China has reportedly ordered its airlines not to take any further deliveries of the U.S.-made Boeing jets in response to the decision of the Trump administration to slap 145% tariffs on Chinese goods, Bloomberg News reported on Tuesday, citing people familiar with the matter.
Shares of Boeing – which looks at China as one of its biggest growth markets and where rival Airbus holds a dominant position – were down 3% in premarket trading.
Beijing has also asked that Chinese carriers halt purchases of aircraft-related equipment and parts from U.S. companies, according to the Bloomberg report.
China's move to halt purchases of aircraft-related components is expected to raise maintenance costs for the jets flying in the country.
The U.S. and China have been embroiled in a tariff war triggered by U.S. President Donald Trump's trade policies.
Last week, China hiked levies on U.S. imports by 125% in retaliation against U.S. tariffs.
The Chinese government is considering ways to assist airlines that lease Boeing jets, which are facing higher costs, Bloomberg News said.
Boeing did not immediately respond to a Reuters request for comment.
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.
China's top three airlines – Air China, China Eastern Airlines and China Southern Airlines – have plans to deliver 45, 53 and 81 Boeing planes, respectively, between 2025-2027.
The escalating tit-for-tat tariffs between the world's two biggest economies risk bringing goods trade between them to a standstill, according to analysts. That trade was valued at over $650 billion in 2024.
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.
