Boeing Air China. Credits: Shutterstock, Vytautas Kielaitis
China reportedly ordered the airline to halt all delivery of Boeing Jets.
Bloomberg Newsquote ReutersChinese authorities reported that Trump has directed major airlines, including China, China, southern China and southern China, to halt future delivery of Boeing Jets due to sudden tariffs of up to 145%.
Boeing stocks fell slightly, down 1% as a result of the report. CNN. Boeing, China’s second-largest aircraft supplier after Airbus, has not commented publicly on the issue, with no Chinese officials or the White House.
Boeing believes China is one of the most important growth markets, predicting its own analysis that Chinese airlines will need 8,830 new planes over the next 20 years.
However, Boeing’s sales in China have declined significantly. Between 2017 and 2018, we received orders for 122 aircraft from Chinese customers. Over the next six years, that number fell to just 28.
The recession is not solely due to political tensions. Boeing’s own troubles also played a role, including grounding the 737 Max after two fatal crashes in late 2018 and early 2019. These collisions killed 346 people, leading to global grounding of the aircraft.
The impact of the trade war on Boeing
The outages can have a major impact on Boeing, with Boeing building all US aircraft and exporting nearly two-thirds of overseas aircraft. The company has donated about $79 billion to the US economy and supports approximately 1.6 million jobs. CNN. It employs nearly 150,000 people in the United States alone.
By the end of 2024, Boeing had 55 undelivered aircraft in stock. Most of it was allocated to China and India. Delivery is important to Boeing’s business model, as the company will be paid in full once the aircraft is handed over.
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