China halts Boeing jet deliveries amid escalating trade tensions

China has reportedly instructed its domestic airlines to cease taking further deliveries of Boeing aircraft, marking the latest escalation in its ongoing trade dispute with the United States. According to The Guardian, citing a Bloomberg report based on sources familiar with the matter, the Chinese government has also directed carriers to halt purchases of aircraft-related equipment and parts from American suppliers.

This development follows Beijing's announcement of retaliatory tariffs over the weekend, including levies of up to 125% on selected US goods. In a move to soften the blow to its aviation sector, the Chinese government is said to be considering measures to support airlines that lease Boeing aircraft and are now facing increased costs as a result of the tariffs.

Roughly ten Boeing 737 Max jets are reportedly ready for delivery to Chinese carriers. However, aircraft for which delivery documentation and payment were completed prior to the imposition of the reciprocal tariffs may still be permitted to enter the country, sources told Bloomberg.

The restriction poses a significant setback for Boeing and other American aerospace manufacturers, as they contend with growing uncertainties in a complex and politically charged global trade environment. The situation adds further strain on Boeing, whose share price has already fallen 7% since the start of the year. In March, the company's Chief Financial Officer, Brian West, acknowledged that tariffs could impact the availability of parts from suppliers.

In Europe, Ryanair's CEO Michael O'Leary commented on the wider implications for aircraft procurement, noting that his airline might delay the delivery of 25 Boeing aircraft scheduled from August if prices rise as a consequence of the US-China trade tensions. Speaking to the Financial Times, O'Leary remarked: