China has ordered its airlines to stop taking deliveries of any more Boeing jets. This is in response to US deciding to put 145% tariffs on Chinese goods, Bloomberg reported citing sources familiar with the matter. The report also said that China has asked its airlines not to buy any aircraft parts or equipment from US companies. In addition, the Chinese government is thinking about helping airlines that rent Boeing planes and are now dealing with higher costs, the Bloomberg news reported.
The report suggested that the US tariffs would more than double the price of American-made planes and parts, making it too expensive for Chinese airlines to buy Boeing aircraft.
China is also thinking about helping airlines that lease Boeing planes and are now facing higher costs, the sources added.
This growing conflict between the world’s two biggest economies has put Boeing in a tough spot. However, the situation is still developing and could change quickly. In the past, Trump has taken back some US tariffs, including those on Apple iPhones made in China.
The Bloomberg report says that around 10 Boeing 737 Max aircrafts are getting ready to join Chinese airline fleets, including two each for China Southern Airlines, Air China, and Xiamen Airlines, according to Aviation Flights Group. Some of these planes are parked near Boeing’s factory in Seattle, while others are at a finishing center in Zhoushan, eastern China, the group’s website shows.
The report further states that some of these planes may already have their paperwork and payments completed before China’s new tariffs, announced on April 11, started on April 12. These jets might still be allowed into China, depending on the situation, some sources said.
China’s Civil Aviation Administration didn’t reply to a faxed request for comment. Boeing also had no comment. China Southern, Air China, and Xiamen Airlines didn’t respond to questions either.
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