Chinese airlines have received directives to halt further deliveries of Boeing aircraft following the U.S. government’s imposition of a steep 145% tariff on imports from China, according to a report from Bloomberg News.
In pre-market trading, Boeing’s stock price reflected investor concerns, dropping by 3.72% just before 7 a.m. EST.
The aerospace giant positions itself as a leading U.S. exporter, catering to customers across over 150 nations.
Thus far in 2023, Boeing has delivered 18 planes to nine Chinese airlines. The nation’s largest carriers, including Air China, China Eastern Airlines, and China Southern Airlines, have plans to receive 45, 53, and 81 Boeing jets, respectively, from 2025 to 2027, as reported by Reuters.
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According to Reuters, Boeing views China as a significant market for expansion, although Airbus currently dominates the sector.
Additionally, the Chinese government has urged local airlines to cease acquiring U.S.-sourced aircraft components and parts, which could lead to increased maintenance expenses for planes operating within China. Nevertheless, authorities in Beijing are exploring possible aid for airlines leasing Boeing aircraft who may face rising costs, as reported by Bloomberg News.
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The ongoing tariff conflict between the U.S. and China, which began under President Donald Trump’s administration, has led to increased tensions in trade relations. Trump reiterated his stance on Friday, expressing comfort with the tariffs, while also indicating that a potential agreement with China could be forthcoming, although no formal arrangements have been made.
In retaliation for U.S. tariffs, China recently raised its tariffs on American imports to 125%.
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| BA | THE BOEING CO. | 159.28 | +2.44 | +1.56% |
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A 125% duty on U.S. aircraft would substantially hike costs for those intended for Chinese airlines, potentially pushing them to explore alternatives such as Airbus or domestic competitor COMAC.
Boeing has yet to issue a comment in response to a request from Finance Newso Business.
Reuters contributed to this report.
