Boeing is facing a major setback as China orders its airlines to stop taking deliveries of the US jetmaker's aircraft.
This new move deepens the trade tensions between the world's two biggest economies and puts fresh pressure on Boeing, which has already been struggling.
Bloomberg reported that Chinese authorities instructed domestic airlines not to accept new Boeing jets.
According to CBS News, China also told its carriers to stop buying parts from American suppliers. Boeing's stock dropped more than 1% on Tuesday morning after the report, falling to $156.74 per share.
The halt comes after China raised tariffs on US goods to as high as 125%. Those taxes match US tariffs on Chinese imports, set by former President Donald Trump, who commented on the situation via social media.
"China just reneged on the big Boeing deal," he posted, referring to planes already committed for purchase.
This decision could hit Boeing hard. Deliveries are how the company gets paid, and now many of its jets—especially the 737 Max—could be left without a buyer.
The company had planned to deliver around 10 737 Max planes to Chinese airlines like Air China, China Southern, and Xiamen Airlines. However, the new restriction could stop that entirely.
China just halted orders of all Boeing planes.
— No Lie with Brian Tyler Cohen (@NoLieWithBTC) April 15, 2025
This is a major strategic failure for Trump. pic.twitter.com/8TPMfrFZEP
Years of Losses Mount as Boeing Faces New China Roadblock
Boeing has already been dealing with major challenges. It has lost $51 billion in operating costs since 2018. The company hasn't seen an annual profit in six years.
Deliveries to China had just started to recover after being mostly halted following two deadly crashes of the 737 Max model in 2018 and 2019. Even after safety approvals elsewhere, China was slow to allow the planes to return to service.
China is a crucial market for Boeing. The company predicts that airlines there will buy over 8,830 new planes in the next 20 years, CNN said.
But Boeing has seen a steep drop in orders from Chinese buyers—just 28 planes ordered in the past six years, compared to 122 in 2017 and 2018.
Boeing builds all of its planes in the United States and ships nearly two-thirds overseas. That makes it especially vulnerable to trade disputes. The tariffs have more than doubled the cost of US-made planes, making them too expensive for Chinese airlines.
With over 55 planes sitting in inventory, mostly meant for China and India, Boeing's future in key markets looks uncertain. The company declined to comment on the report.
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