China retaliating against US tariffs by stopping all deliveries of Boeing

China has retaliated against US tariffs by ordering its airlines to stop accepting deliveries from Boeing, according to an article in The Telegraph. 

The order is just the latest blow to US/China trade relations and per the report: “will apply to all existing orders from the US manufacturing giant, while Beijing has also told the country’s carriers not to buy any aircraft-related equipment or parts from other American companies.” 

Stock markets reacted negatively following the news with Boeing’s shares slumping as much as 4.5pc in premarket trading. 

Chinese tariffs have already more than doubled the cost of Boeing planes and made it impractical for airlines to buy them, according to Bloomberg. 

Boeing reportedly fears “losing access” to one of the world’s biggest aviation markets because of the tit for tat tariff volatility. 

China is a critical market for Boeing and its economy is expected to be 20% of global demand 20 years from now. 

Last year, Boeing recorded a $19 billion trade flow according to our analysis. 

Currently, around 10 Boeing 737s are preparing to enter Chinese airline fleets, based on data from Aviation Flights Group.  

Paperwork and payments for some of the jets may have been completed before China’s reciprocal tariffs took effect on April 12, Bloomberg reported, which means they could still be delivered. 

The Chinese government is also considering ways to provide assistance to airlines that lease Boeing jets and are facing higher costs, Bloomberg reported. 

Airlines the US and Europe may: “defer deliveries should Washington impose levies on planes, but Mr Trump has so far failed to make clear whether that will be the case,” the Telegraph said/