China halts US-made Boeing jet deliveries amid trade war: Report | World News
As the US slaps sky-high tariffs on Chinese goods, Beijing has ordered its airlines to halt all new purchases of Boeing jets, adding fresh turbulence to an already stormy trade war, news agency Reuters reported, citing Bloomberg News sources familiar with the matter.
The directive, which also includes a ban on buying US aircraft parts and components, is likely to raise maintenance costs for jets already operating in the country. Boeing shares dropped 3 per cent in premarket trading on Tuesday amid concerns over the loss of access to one of its biggest growth markets, where European rival Airbus already dominates, Reuters reported.
China’s top three carriers—Air China, China Eastern Airlines and China Southern Airlines—are scheduled to take delivery of a combined 179 Boeing aircraft between 2025 and 2027. The new tariffs make those orders significantly more expensive, potentially pushing Chinese airlines to explore alternatives such as Airbus or homegrown manufacturer COMAC.
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The move is part of Beijing’s retaliation to President Donald Trump’s sweeping trade policies, which last week triggered Chinese counter-tariffs of up to 125 per cent on US imports after Washington imposed a higher 145 per cent. According to Bloomberg, the Chinese government is now weighing support measures for airlines leasing Boeing jets to ease the financial burden.
The broader impact of the tit-for-tat tariffs is already alarming analysts, who warn that escalating measures could freeze the $650 billion goods trade between the world’s two largest economies. While Trump said last week he was “comfortable” with the tariffs and hinted that a deal with Beijing could still be reached, no progress has been reported so far.
Semiconductors next?
The Trump adminration has launched formal investigations into imports of pharmaceuticals and semiconductors, setting the stage for potential new tariffs on national security grounds, according to notices posted to the Federal Reger on Monday.
The move signals an expansion of White House’s tariff strategy, with the adminration invoking Section 232 of the Trade Expansion Act of 1962 — a statute that allows the government to impose trade restrictions if imports are deemed a threat to national security. Public comments on the proposed inquiries will be accepted for 21 days starting Wednesday, and the investigations must be concluded within 270 days.Story continues below this ad
The pharmaceutical and semiconductor sectors had previously been exempt from the 10% tariffs the US began collecting on April 5. However, Trump has said both industries will face separate levies. He added on Sunday that the new tariff rate on imported semiconductors would be announced “within the next week,” while also suggesting there could be “flexibility” for certain companies.
The US currently relies heavily on imported chips, particularly from Taiwan — a dependency the Biden adminration had tried to reduce through the CHIPS and Science Act, which awarded billions to semiconductor manufacturers to expand domestic production.
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