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China halts Boeing orders, as US-China trade war continues

Anmol Kumar by Anmol Kumar
April 16, 2025
in Business
China Halts Boeing Orders Amid Growing US-China Trade Tension

China Halts Boeing Orders Amid Growing US-China Trade Tension

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Amid the ongoing trade war with the US, China has told its airlines to stop taking new Boeing planes, Bloomberg said. This came after US President Donald Trump put huge tariffs on Chinese goods. Chinese airlines were also told to stop buying aircraft parts from US firms, the same source cited.

Trump’s new tariffs raised costs, while China hit back with 125% tariffs on American goods last weekend. These new tariffs make US-made planes and parts cost more than double, so Chinese airlines cannot easily accept Boeing planes now. Otherwise, maintenance of the aircraft could cost double and ultimately affect the passenger in the form of increased airfare.

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China is also trying to help airlines that lease Boeing jets and are now facing higher costs, the media reported, quoting sources. This has caused the devaluation of the company’s shares. Boeing’s shares dropped $2.59, or 1.6%, to $156.74 in morning trade.

The tariff war has put Boeing in a tough spot. The future is unclear and may change. Trump has rolled back some tariffs before, like those on Apple iPhones from China. However, this time, Trump is looking firm on imposing tariffs, at least on China.

This standoff is another problem for Boeing in a big market for planes. China may need 20% of the world’s planes in the next 20 years. In 2018, Boeing sent 25% of its planes to China.

But Boeing got no big new orders from China lately, due to trade tension and its own issues. China was the first to ground the 737 Max in 2019 after two deadly crashes.

Trade war under Trump and Biden pushed China to buy more planes from Airbus SE, a European maker. In 2024, Boeing faced trouble again when a door plug came off mid-flight in January, raising more safety fears.

The case shows China still needs foreign firms for its fast-growing aircraft needs. The region where China may look for replacement could be the European market. As the trade war intensifies, countries must be cautious to save their economic interests in a growing anarchic world.

 

Tags: BoeingChinaTrump TariffsUS Firms
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Anmol Kumar

Anmol Kumar

A Failed Shuttler and an upcoming geopolitical analyst, who always try to bring a different angle of any geopolitical event. I spend my spare time in reading non-fictional books, cooking food and spending time on sports.

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