The Chinese government has told the country’s domestic airlines to stop accepting Boeing Jet delivery as a trade war between the two biggest economies of the world escalating, Bloomberg News reports.
China has also directed US companies to stop purchasing airline parts and other components, according to Bloomberg.
Boeing declined to comment. Aviation Giant shares fell by $2.59 (1.6%) in morning trading to $156.74.
Orders to stop accepting the Boeing Jets come after China Boost Retaliation tariffs on US goods will be 125%. This coincides with the level of tariffs Trump has imposed on Chinese imports, but these taxes could reach 145% for some products. China’s tariffs report that the prices of US-made aircraft and parts have more than doubled, making costs more affordable.
Bloomberg reports that Boeing is planning to ship around 10 737 largest aircraft to Chinese airlines, including China Southern Airlines and Air Xiamen Airlines, citing data from the Airmail Group. In the first quarter, Boeing delivered all 130 aircraft, including over 100 737 jets, the company said on April 8th.
Speaking to the report in Truth Social Post Tuesday, Trump wrote that China has just destroyed the Big Boeing contract and is fully committed to the aircraft.”
Bloomberg reported that some of the payment and delivery documents for the jet ordered by Chinese airlines could have been completed earlier this month before the trade war spread. In that case, some planes could be able to enter China, news service reported.
