China Halts Boeing Deliveries Amid Escalating Trade War
The Chinese government has instructed domestic airlines to suspend deliveries of Boeing aircraft and halt the purchase of U.S.-made aviation components. This move comes in response to the U.S. imposing a 145% tariff on Chinese goods. In retaliation, China has introduced a 125% tariff on American products, including aircraft.
Major state-owned carriers such as Air China, China Southern, and China Eastern are expected to be hit hardest by the decision. These three airlines have a combined total of 179 Boeing aircraft scheduled for delivery by 2027. Boeing had already been struggling to secure new orders in China following the 737 MAX crashes, resulting in a significant loss of market share.
Meanwhile, Airbus is also assessing the possibility of redirecting its deliveries to other markets due to a separate 20% tariff imposed by the U.S. on European products. China’s domestic aircraft manufacturer COMAC currently lacks the capacity to meet national demand on its own. However, in early March, COMAC announced plans to ramp up production of its C919 passenger jet and is working on a fully Chinese-made engine for the aircraft.
As the world’s second-largest aviation market, China’s decision deals a major blow to Boeing and highlights how the ongoing trade war could reshape the global aviation industry.
