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China has reportedly ordered its airlines not to take any further deliveries of Boeing jets, the latest move in its tit-for-tat trade war with the US. The Chinese government has asked carriers to stop purchases of aircraft-related equipment and parts from American companies, according to a Bloomberg News article, which cited people familiar with the matter.
The order was reported to have come after the country raised its retaliatory tariffs on US goods to 125% on Friday in response to Donald Trump’s levies on Chinese imports totaling 145%. Beijing was also said to be considering ways to support airlines that lease Boeing jets and are facing higher costs.
About 10 Boeing 737 Max jets are being prepared to join Chinese airlines, and if delivery paperwork and payment on some of them were completed before Chinese ”reciprocal” tariffs came into effect, the planes may be allowed to enter the country, sources told Bloomberg.
The restriction marks a serious blow for Boeing and other manufacturers trying to navigate the escalating trade war between the world’s two biggest economies.
The group chief executive of the budget airline Ryanair, Michael O’Leary, has said his company could delay taking deliveries of Boeing aircraft if they become more expensive. He told the Financial Times that Ryanair was due to receive a further 25 aircraft from Boeing from August but would not need the planes until around March or April 2026. “We might delay them and hope that common sense will prevail,” O’Leary said.
Shares in Boeing have been buffeted by worries about the impact of trade tariffs, as well as complaints from some shareholders that the company has underinvested in its engineering. The company has lost 7% of its market value since the start of the year, and in March its chief financial officer, Brian West, said tariffs could hit availability of parts from its suppliers.
The rival European plane manufacturer Airbus said on Tuesday that it was watching the evolving situation on trade tariffs. Its chief executive, Guillaume Faury, told shareholders the company was having problems receiving components from the American supplier Spirit AeroSystems, which was weighing on the production of its A350 and A220 jetliners.
Boeing was approached for comment.
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Comments
But wait, why should most care about one stock? Watch the SP500 and let me know.
Boeing had problems for years now and the stock lost money in the last 3 years(https://schrts.co/iMhxbfFJ)
If you believe in all your posts. You should sell everything, or at least all your American stocks + bonds and be In MM until Trump is out of office.
It will be interesting to see your reaction when the SP500 breaks its previous high. I will be back
I went all in April 23rd. ;^)
most realize it is a momentum mkt, and a short-term correction to all time highs is very much a possibility :
- being unable to extract any more donations\bribes in 1-on-1 tariff negotiations, trump gets bored and declares victory resulting in status quo via combination of exemptions and suspensions. (abundant signals already)
- extension of tax cuts actually happen
- through recession, coercion, or independent decisions, short term rates may get cut
what the market will get WRONG in its short-term weighting is that there is any viable trump strategy and no longterm economic damage. effective capex injury from halted reshoring away from china has already taken hits for ~10 weeks of uncertainty regardless of MAGA propaganda.
what the vast majority also gets wrong (continuously) is that they can time it...refer to trump bump and 4 years of a golden age vibe post-election.