Boeing has suffered a major setback in its largest international market after China reportedly ordered its airlines to halt deliveries of the US planemaker’s jets, escalating trade tensions between Washington and Beijing.
The move comes days after China raised retaliatory tariffs on US imports to 125%, following President Donald Trump’s latest round of tariffs targeting Chinese goods. In response, Chinese authorities have reportedly directed local airlines to suspend not only the receipt of new Boeing aircraft but also the purchase of aircraft-related parts and equipment from US suppliers, according to a Bloomberg report citing unnamed sources.
The decision threatens to further disrupt Boeing’s already troubled recovery and could strain commercial ties between the world’s two largest economies.
Deliveries at risk amid shifting trade dynamics
Roughly 10 Boeing 737 MAX aircraft are currently being readied for Chinese carriers, but it remains unclear whether delivery and payment on those jets were completed before the new tariffs came into effect. If so, the planes may still be allowed into the country under a temporary exemption. Otherwise, they could be grounded indefinitely.
The uncertainty itself has cast a shadow over Boeing’s prospects in China, which accounts for a substantial portion of its projected growth. China’s top three airlines — Air China, China Eastern, and China Southern — had been scheduled to take delivery of more than 170 Boeing aircraft between 2025 and 2027.
Beijing is also reportedly exploring financial support measures for domestic airlines leasing Boeing jets, which could face increased costs under the new tariff regime.
Shares in Boeing fell around 1% on Tuesday as the news broke, adding to a broader downward trend in 2025 amid investor concern about trade-related risks and internal operational challenges.
Mounting pressure on Boeing and the global aerospace supply chain
The impact on Boeing is particularly acute because China is not just a major customer — it’s the largest aircraft market globally by future demand. Boeing estimates Chinese airlines will need more than 8,800 new planes over the next 20 years, making it an essential pillar of the company’s long-term forecast.
Yet Boeing has already faced delivery freezes in China since 2019, following the global grounding of the 737 MAX after two fatal crashes. While regulators have slowly moved toward re-certifying the jet, few deliveries have resumed. At the end of 2024, Boeing still had 55 undelivered jets in inventory earmarked for customers in China and India.
Critically, Boeing receives most of its payment upon delivery, not at the point of sale — meaning the disruption poses an immediate cash flow risk.
The halt comes at a precarious time for Boeing, which has been attempting to stabilise its commercial aircraft division following a string of crises, including regulatory scrutiny, a door-panel blowout on a MAX 9 jet last year, and ongoing supply chain constraints.
The company’s Chief Financial Officer, Brian West, previously warned that tariffs could impact part availability from key suppliers. Airbus, Boeing’s main rival, also signalled concern this week, noting that delays from US supplier Spirit AeroSystems are affecting the production of its A350 and A220 jetliners.
A broader decoupling in aviation supply chains could prove costly for all sides. According to Bank of America analyst Ron Epstein, if China halts the purchase of US components entirely, it could imperil the viability of its own C919 program, which relies heavily on American-made parts.
