Escalating Trade Dispute Includes U.S. Parts, Equipment

The Chinese government has ordered its airlines to stop accepting deliveries of Boeing aircraft amid the growing dispute with the U.S. over tariffs. The directive also includes aircraft-related parts and equipment from U.S. companies, according to reports from several outlets citing sources familiar with the matter.

The order was issued in direct response to the U.S. decision to impose tariffs of 145% on Chinese goods. The top three Chinese airlines – Air China, China Eastern Airlines, and China Southern Airlines – had been anticipating deliveries of 45, 53, and 81 Boeing aircraft, respectively, between now and 2027.

The global aerospace industry has been roiled by what’s being characterized as a tariff war, with aircraft manufacturers, suppliers, and airlines reviewing billions of dollars worth of contracts. In the U.S., Delta has rescinded its financial forecast for 2025 due to softening demand, and added that it may defer aircraft deliveries that face tariffs to protect its margins.

Boeing considers China one of its largest growth markets and could face substantial repercussions if this situation persists for more than a short period.

Meanwhile, China’s Ministry of Foreign Affairs released a statement criticizing Washington’s actions: “The United States has announced, under various pretexts, that it will impose excessive tariffs on all its trading partners, including China. This has seriously infringed upon the legitimate rights and interests of all countries, seriously violated the rules of the World Trade Organization, and severely impacted the stability of the global economic order.”

Beijing also called the tariffs “unilateralism, protectionism, and economic bullying” and using tariffs to exert pressure on China was bound to be “widely opposed by the international community.”

The longer the freeze on deliveries of Boeing aircraft and other U.S. aerospace parts persists increases the chances that it will benefit Airbus and China’s state manufacturer, Commercial Aircraft Corporation of China.

FMI:  www.boeing.com/