Boeing’s setback boosts competitiveness for rivals Airbus and COMAC in China.China has reportedly ordered its airlines not to take any further deliveries of Boeing jets in response to United States President Donald Trump’s decision to impose 145 percent tariffs on Chinese goods.
Bloomberg News, citing people familiar with the matter, reported the development on Tuesday.
The global aerospace industry is in the middle of a full-blown tariff war, with planemakers, airlines and suppliers reviewing contracts worth billions of dollars, after US supplier Howmet Aerospace ignited a debate over who should bear the cost of the tariffs.
China’s top three airlines – Air China, China Eastern Airlines and China Southern Airlines – had planned to take delivery of 45, 53 and 81 Boeing planes, respectively, between 2025 and 2027.
Beijing has also asked that Chinese carriers halt purchases of aircraft-related equipment and parts from US companies like Boeing, the Bloomberg report said.
China’s move to halt purchases of aircraft-related components is expected to raise maintenance costs for the jets flying in the country. Advertisement
The Chinese government is also considering ways to provide assistance to airlines that lease Boeing jets and are facing higher costs, Bloomberg News reported.
Another blow for Boeing
Investors are taking note. The move could open more opportunities for France-based Airbus and Chinese domestic aerospace manufacturer the Commercial Aircraft Corporation of China (COMAC). Shares for Airbus, which is a publicly traded company, are up by almost a full percentage point on the news as of 12pm ET in the US (16:00 GMT), while …
