China has escalated its trade war with the U.S. by ordering its airlines to stop accepting Boeing jet deliveries, potentially derailing billions in aircraft sales amid soaring tariffs between the two economic powers.
The directive comes as China boosted its retaliatory tariffs on U.S. goods to 125%, a crushing blow for Boeing, which was scheduled to deliver about 10 737 Max planes to Chinese carriers. These high tariffs would effectively more than double the cost of Boeing jets and parts.
President Trump claimed on social media that China “just reneged on the big Boeing deal,” though the situation appears more complex than a simple cancellation.
Industry analysts suggest Boeing might find other buyers. “Boeing should have no difficulty reallocating the aircraft to other airlines that need additional capacity,” according to one report, with India mentioned as a “potential recipient” for jets originally destined for Chinese airlines.
Still, this development puts Boeing in a tough spot. The American manufacturer was counting on Chinese purchases of 29 aircraft in 2025 alone, and the Chinese market represents a significant portion of Boeing’s future growth strategy.
The ripple effects could be substantial. With U.S. tariffs on Chinese goods reaching as high as 145% for some products, the entire trade relationship—worth over $650 billion—hangs in the balance.
Airbus, Boeing’s European rival, stands to benefit significantly. Some analysts warn “We do see this as unsustainable” and, if it lasts, it “could point to a structural advantage for Airbus in China.”
Chinese airlines are now likely to pivot toward Airbus or even domestically-produced COMAC aircraft as alternatives to Boeing’s offerings.
The timing couldn’t be worse for Boeing, which is still working to recover its reputation after years of safety issues with its 737 Max jets. China represents approximately 20% of the global market for large civil aircraft over the next two decades.
As tensions between Washington and Beijing continue to simmer, Boeing finds itself once again caught in geopolitical crossfire that threatens both its bottom line and its competitive position in what may be the world’s most important aviation market.