BEIJING/WASHINGTON: China has ordered its airlines not to take any further deliveries of Boeing jets in response to the US decision to impose 145 per cent 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 2pc in early trading. 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.

US President Donald Trump said on Tuesday that China has gone back on a major Boeing deal. “Interestingly, they just reneged on the big Boeing deal, saying that they will ‘not take possession’ of fully committed to aircraft,” said Trump in a Truth Social post, referring to China. But he did not provide further details on the Boeing pact he was referring to.

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.

Trump says Beijing ‘reneged’ on deal as tensions flare over US tariffs

Beijing has also asked that Chinese carriers halt purchases of aircraft-related equipment and parts from US companies, 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. The Chinese government is also considering ways to provide assistance to airlines that lease Boeing jets and are facing higher costs, Bloomberg News reported.

Published in Dawn, April 16th, 2025