China Freezes Boeing Jet Deliveries Amid Intensifying U.S. Trade Conflict
China has reportedly directed its airlines to pause upcoming Boeing aircraft deliveries in response to Washington’s recent decision to impose 145% tariffs on Chinese imports, according to Bloomberg News, which cited sources familiar with the matter.
This development dealt a fresh blow to Boeing, whose shares dipped 0.5% in midday trading. The American aircraft manufacturer now faces increased challenges in one of its key international markets, where Airbus already enjoys a strong foothold.
The growing trade dispute between the U.S. and China has now drawn in the global aerospace sector, with airlines and manufacturers reconsidering multi-billion-dollar agreements. Tensions were recently exacerbated by disagreements over tariff-related costs involving U.S.-based firm Howmet Aerospace.
Uncertainty around evolving tariffs could delay aircraft handovers, as some airline executives indicate they would rather postpone deliveries than absorb steep new duties.
China’s three biggest carriers — Air China, China Eastern, and China Southern — were scheduled to receive 45, 53, and 81 Boeing jets respectively between 2025 and 2027.
In addition to the delivery freeze, Beijing has reportedly advised domestic airlines to stop purchasing aircraft equipment and spare parts from U.S. companies.
Although Reuters has not independently verified these claims, two aerospace industry sources confirmed they were unaware of any formal, widespread ban on U.S. aviation parts by China.
Analysts suggest that a temporary halt in deliveries may not significantly harm Boeing in the short term, as it could reroute planes to other customers. Meanwhile, Airbus is unlikely to meet China’s full demand alone due to limited production capacity.
However, a complete ban on U.S. aircraft parts could be far more disruptive to China’s aviation ambitions, particularly for its C919 aircraft program.
“Should China halt imports of U.S. components, it could effectively stall the C919’s development,” wrote Ron Epstein, an analyst at Bank of America, in a note to investors.
According to Bloomberg, Chinese officials are also exploring support measures for local airlines leasing Boeing aircraft to help offset rising costs.
China previously grounded Boeing’s 737 MAX fleet following two deadly crashes in 2018 and 2019, and largely suspended further deliveries of the model starting in 2019.
Boeing declined to offer a public comment on the latest developments.
This freeze marks another obstacle in Boeing’s path to recovery after a turbulent year, which included labor strikes, regulatory investigations, and ongoing supply chain challenges.
The suspension comes shortly after China imposed new tariffs of up to 125% on U.S. goods, a direct response to earlier American trade measures. The increased costs could force Chinese airlines to explore alternatives like Airbus or domestic manufacturer COMAC.
Boeing’s market value has dropped by over 33% since a door panel blew off a newly delivered MAX 9 jet last year, intensifying scrutiny and compounding the company’s woes.
With both countries continuing to escalate trade penalties, the standoff threatens to severely disrupt commerce between the world’s two largest economies — trade that totaled more than $650 billion in 2024.
