China has instructed its airlines to suspend deliveries of Boeing aircraft, escalating tensions in its trade dispute with the United States.
According to Bloomberg News, the move follows President Donald Trump’s imposition of 145% tariffs on Chinese imports, prompting Beijing to retaliate with 125% tariffs on American goods.
The suspension affects 179 Boeing planes scheduled for delivery to China’s three major airlines – Air China, China Eastern, and China Southern – by 2027. This number surpasses the entire mainline fleet of Qantas.
Stay up to date on the latest news with The National Briefing – keeping you in the loop with news as it hits:
Australian aviation consultant Neil Hansford commented that the decision could backfire on China, which faces an aircraft shortage post-COVID. He noted that while the move is emotive, China might bear the brunt of the consequences. Hansford also suggested that Boeing could redirect these aircraft to other global customers experiencing equipment shortages.
In response to the escalating trade tensions, China’s Foreign Ministry spokesperson Lin Jian stated that the country remains open to business, emphasising a preference for “handshakes rather than fist fights” and a commitment to “tearing down walls rather than building barriers”.
Meanwhile, White House Press Secretary Karoline Leavitt indicated that the U.S. is awaiting China’s initiative to resume trade negotiations. She conveyed President Trump’s stance that “the ball is in China’s court,” asserting that China needs to make a deal with the U.S., not the other way around.
The halt in Boeing deliveries adds to the aerospace manufacturer’s challenges, including safety concerns over its 737 Max aircraft and significant financial losses in 2024.
Boeing’s stock has declined over 3% following the announcement .
As the trade war intensifies, both nations show no signs of concession, leaving global markets and industries in a state of uncertainty.