Chinese airlines have been ordered not to take any further deliveries of Boeing aircraft in response to the U.S. imposing 145% tariffs on Chinese goods, Bloomberg News reports.
Just before 7 a.m. EST, Boeing’s pre-market share stock price was down 3.72%.
The aerospace company calls itself a “top U.S. exporter” that serves “customers in more than 150 countries.”
Boeing’s year-to-date deliveries show that 18 aircraft have been delivered to nine airlines in China. The country’s top three airlines – Air China, China Eastern Airlines and China Southern Airlines – have plans to take delivery of 45, 53 and 81 Boeing planes, respectively, between 2025-2027, Reuters reports.
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Boeing sees China as an opportunity for growth, according to Reuters, where rival Airbus holds a dominant position.
Beijing has also asked that Chinese carriers halt purchases of aircraft-related equipment and parts from U.S. companies, the Bloomberg report said, which is expected to raise maintenance costs for the jets flying in the country. However, the Chinese government is considering ways to provide assistance to airlines that lease Boeing jets and are facing higher costs, Bloomberg News reported.
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The U.S. and China have been embroiled in a tariff war triggered by President Donald Trump’s trade policies. Trump, who said on Friday that he was comfortable with the tariffs on China, also suggested that a deal with Beijing could be on the horizon, but no agreement has been reached yet.
China last week hiked levies on U.S. imports to 125% in retaliation against U.S. tariffs.
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| BA | THE BOEING CO. | 155.50 | -3.88 | -2.43% |
A 125% duty would significantly raise the cost of Boeing jets bound for Chinese carriers, making them a financial burden and potentially prompting airlines to consider alternatives like Airbus and domestic player COMAC.
Boeing did not immediately respond to a FOX Business request for comment.
Reuters contributed to this report.
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