China orders airlines to stop orders of Boeing aircraft amid trade war with US

• China is calling on its airlines to halt further orders of Boeing jets amid a trade dispute with the United States. Beijing reportedly believes the purchase of Boeing planes is impractical considering the rising costs of aircraft and aircraft-related equipment amid U.S. tariffs against China of up to 145%, and tariffs from Beijing of 125%.
• The move is another setback for Boeing, which has faced issues over the years that have hurt sales.
• China is reportedly expected to make up 20% of global travel over the next two decades.

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China is ordering its airlines to halt any further orders of Boeing jets as a trade war with United States continues, which recently saw President Donald Trump implement tariffs as high as 145% on Beijing’s goods.

The news comes in a report from Bloomberg published on Tuesday, April 15, which cites people familiar with the matter on the condition of anonymity.

What is China doing?

China reportedly told the nation’s carriers to stop purchasing aircraft-related equipment and parts from U.S. companies.

Beijing’s move follows China’s announcement and implementation of 125% retaliatory tariffs on U.S. imports over the weekend of April 11. Sources tell Bloomberg that those levies would have more than doubled the cost of U.S.-made aircraft and parts, making it counterintuitive for Chinese airlines to order more Boeing planes.

Officials with the Chinese Communist Party (CCP) are weighing other options to help airlines that lease Boeing jets, according to Bloomberg.

How did the markets respond to the news?

Shares of Boeing, which views Beijing as one of its biggest potential growth markets, were down 3% in premarket trading on Tuesday. Shares of the company’s rival Airbus were up 1%, according to Reuters.

Boeing’s shares have declined at least 10% this year as of Monday, April 14, according to Bloomberg.

What about finished deals?

The trade dispute between Beijing and Washington has put more pressure on an already struggling airline industry, although roughly 10 Boeing 737 Max jets are preparing to enter Chinese airlines’ fleets. Some of the planes reportedly remain near Boeing’s factory in Seattle, while others are at a finishing facility in eastern China, according to data from Aviation Flights Group’s website.

Bloomberg reports some of the delivery paperwork and payments for an undisclosed number of jets may have been completed before China announced its reciprocal tariffs. Those jets may be permitted to enter China “on a case-by-case basis.”

Boeing reportedly has several finished planes sitting in inventory that were meant for Chinese carriers. The company warns that the trade dispute between Beijing and Washington could harm supply chains already impacted by the COVID-19 pandemic, which were only recently signaling progress in getting back on track.

The Civil Aviation Administration of China did not respond to requests for comments from Bloomberg. Boeing declined to comment on the report as well.

What other setbacks does this add for Boeing?

For Boeing, the news is another setback in one of the largest global markets for aircraft sales. Beijing is reportedly predicted to make up 20% of the world’s aircraft demand over the next two decades. The company has, however, failed to get a major order in China in recent years due to trade and safety issues raised by several high-profile incidents.

Beijing became the first to ground 737 Max planes in 2019 after a pair of deadly crashes.

There were additional safety concerns surrounding Boeing after a plane’s door flew off mid-flight in January 2024.

Trade disagreements with the Biden and Trump administrations also led China to lean on orders from Europe’s Airbus.