The Chinese government has instructed airlines not to buy aircraft from the U.S. Boeing company.
Bloomberg reports that on Tuesday, China made this decision in response to U.S. tariff policies, instructing airlines to stop acquiring aircraft-related equipment and parts from American companies. Chinese government issued this suspension right after President Donald Trump imposed 20% universal and 125% reciprocal tariffs.
In response to Trump’s tariff policy, China raised tariffs on U.S. goods to 125%. If these retaliatory tariffs take effect, the cost of American aircraft and parts will double, making Boeing aircraft imports unfeasible. Chinese airlines, waiting for the delivery of ten Boeing 737 MAX aircraft, announced plans to stop further purchases. These aircraft, purchased before the tariffs, sell at pre-tariff prices.
China represents a crucial market, accounting for 20% of the global aircraft industry. In 2018, China purchased a quarter of all Boeing-manufactured aircraft.
