Boeing (BA) shares dropped sharply after China announced it would suspend purchases of aircraft and components from the U.S. aerospace giant. In pre-market trading on the New York Stock Exchange, Boeing stock fell by 4.76%, reaching as low as $151.70. By 12:19 PM, the decline had moderated to 2.92%, with shares trading at $154.63.
According to reports from RBK and Bloomberg, the Chinese government instructed domestic airlines to stop acquiring Boeing jets and U.S.-made aviation parts, in retaliation for Washington’s latest round of tariffs on Chinese goods.
Investors began offloading Boeing shares swiftly following the announcement. Given that China represents the world’s second-largest aviation market, analysts warn that the move could have a deepening negative impact on Boeing’s future revenues and global positioning.
