China Halts Boeing Deliveries Amid Escalating Trade War With US

In a setback for Boeing, the American company that manufactures and sells aircraft components, the Chinese government has ordered its airlines to halt any further deliveries, according to a report by Bloomberg.

The development comes amid the ongoing trade war between the U.S. and China—the world’s two largest economies.

With U.S. President Donald Trump imposing a 145% tariff on Chinese goods, Beijing retaliated with a 125% tax on imports of all American products. The Chinese government’s decision not to accept further deliveries from Boeing Co. follows concerns that the levies would more than double the cost of U.S.-made aircraft and components.

Trump had imposed tariffs on numerous countries in the first week of April. However, he announced a 90-day pause for 70 nations—excluding China—reportedly in response to a weakening U.S. bond market.

Following Bloomberg’s report, shares of the U.S. aerospace giant fell by 4.6% in premarket trading.