Boeing took a major hit Tuesday morning as China halted all future deliveries of its aircraft, escalating trade tensions triggered by the latest round of U.S. tariffs. Chinese airlines reportedly halted Boeing jet deliveries after the U.S. government imposed 145% tariffs on Chinese goods, Bloomberg News reports.
Immediate Market Impact
Shares of Boeing stock fell 3.72% in pre-market trading, and BA stock was down 2.43% as of the latest update, hitting $155.50 per share. The decision could threaten Boeing’s plans to regain ground in a critical aviation market dominated by European rival Airbus.
Boeing’s China Exposure
So far this year, Boeing has delivered 18 aircraft to nine Chinese airlines, and major carriers like Air China, China Eastern, and China Southern plan to receive a combined 179 more between 2025 and 2027.
But those plans are now in jeopardy. Beijing has also advised airlines to stop purchasing U.S.-made parts and equipment, a move that could raise operating costs and lead carriers to reconsider deals with Boeing.
“This is a sharp blow to one of America’s top exporters,” said one analyst, “especially as Boeing fights to expand in markets where Airbus is already strong.”
Possible Shifts to Airbus and COMAC
The Chinese government is reportedly exploring financial aid for carriers leasing Boeing jets, but a 125% duty on U.S.-made aircraft would make Boeing jets significantly more expensive. Analysts expect a pivot toward Airbus or domestic manufacturer COMAC.
Trade Tensions Continue
This latest move is part of a broader trade war driven by President Donald Trump’s tariff policies. Trump said he’s “comfortable” with the tariffs but left the door open for a deal with Beijing.
However, without an agreement, Boeing will likely struggle to maintain its foothold in one of the world’s largest aviation markets.
Source: Fox Business
