The trade war that nobody will win expands to Boeing aircraft.
Bloomberg reports China Orders Boeing Jet Delivery Halt as Trade War Expands
China has ordered its airlines not to take any further deliveries of Boeing Co. jets as part of the tit-for-tat trade war that’s seen US President Donald Trump levy tariffs of as high as 145% on Chinese goods, according to people familiar with the matter.
Beijing has also requested that Chinese carriers halt any purchases of aircraft-related equipment and parts from US companies, the people said, asking not to be identified discussing matters that are private.
The order came after China unveiled retaliatory tariffs of 125% on American goods this past weekend, the people said. Those levies on their own would have more than doubled the cost of US-made aircraft and parts, making it impractical for Chinese airlines to accept Boeing planes.
The Chinese government is also considering ways to provide assistance to airlines that lease Boeing jets and are facing higher costs, the people said.
How Important is China to Boeing?
The Wall Street Journal adds additional details in China Goes After Boeing
Cutting off deliveries to China could dent revenue for the cash-strapped jet maker, which has been working to clear out parked planes and ramp up production and deliveries amid a quality crisis. Longer-term, the Chinese market is crucial; Boeing has forecast it will account for a fifth of the world’s airplane deliveries in the next two decades.
Of 130 airplanes Boeing delivered globally this year through March, 18 went to Chinese airlines. Boeing delivered two planes to Chinese airlines earlier this month, according to data from Cirium.
China halted deliveries of Boeing jets following a pair of fatal MAX crashes in 2018 and 2019 and had only resumed taking planes last summer.
Another Lose-Lose Move
This is another spat with only losers. Boeing gets cancelled orders but China does not get maintenance parts if and when needed.
However, if this goes on long enough, Airbus will be the winner of this aspect.
Related Posts
April 13, 2025: Tariff Clown Show Continues, Tech Tariffs Back On, Separately
What a revolving door circus Trump’s tariff policy has become.
April 13, 2025: China Halts Rare Earth Exports Desperately Needed by the US
I have been warning about this for years. It’s now happening.
April 14, 2025: Say goodbye to Cheap Socks and Other Apparel, We Call This Winning
You pay more and get less, but Trump calls it winning.
But this is OK and prices won’t rise because Trump’s head of the FTC put on his Elizabeth Warren hat and demanded companies not price gouge in response to tariffs.
For discussion, please see Trump’s FTC Head Talks Just Like Elizabeth Warren
“I liked it better when you were taking pot shots at Biden.”
I take pot shots at whoever deserves them.
The party in power tends to get the most of them
It would be fun to take some shots at, let’s say, the illustrious Governor of NY.
Who cares about her?
She is hot trash.
and god knows this shower need as many shot as possible, Incompetence is personified by this administration.
Perhaps an opportunity for Russia.
Will China halt delivery of the spare parts?
=if this goes on long enough, Airbus will be the winner of this aspect.
actually it will be worse!
CHINA actively develops own planes: big one and middle size one
of course it is not even matter of 5 years, but 15*20 years it will be ready
US equities markets appear to be shrugging off this trade war. Part of it is dollar devaluation, but I am guessing they detected a “leak” somewhere in the dam. “Leaks” have a tendency to grow larger through. Witness Russian oil exports since 2022.
Am I supposed to be upset that China isn’t buying crappy airplanes from a company that outsources it’s mfg to other places, probably some in China? Really?
I don’t care about Boeing. It’s a crap company run by garbage people who don’t give a rip about their product anymore.
Another day of Trump’s tariff war. And he begs China “again” to start negotiations.
What a show!
This wont move the needle for BA.
China Belt and Road airports are long enough for Y-20 which competes with Boeing C-17.
i’m reading that Goldman Sachs said: “We think the impact to Boeing is very small because China had already stopped taking Boeing deliveries and stopped ordering Boeing aircraft during the last Trump administration, such that there is no real reduction to implement,”
Comments?
GS is trying way too hard to put a positive spin on it. China had recently restarted buying from Boeing. I read that Boeing had forecasted 20% of their sales over the next 20 years would come from China. It’s a growing market – can’t say that about the Western world.
See Boeing’s own press release from last year: https://boeing.mediaroom.com/2024-08-26-Boeing-China-Commercial-Fleet-to-More-than-Double-by-2043-for-Growth-and-Modernization
Aha! Ok, thanks.
Goldman has a buy recommendation on the stock, and has been riding it all the way down. They need to first get their whales out of the position, then they can afford to be honest.
Sure with the Trump cartel screwing up the FAA and firing air traffic controllers we will need more planes to replace those that don’t make it to the next airport.
China and rare earths? We have discussed this before https://www.jstor.org/stable/resrep00363?seq=2https://www.jstor.org/stable/resrep00363?seq=2
Elections have consequences!
Now I understand how trump bankrupted a casino. I’m not buying into this “China business with Boeing doesn’t matter” nonsense. The sale of an aircraft is only part of the revenue stream…
20% over 20 years. The out years are so much guess as to be worthless. Which means it could be worse, too. It is a non-issue today.
Bombardier built the C919 Chineses passenger plane with a Chinese co twelve years ago. Macron stole Bombardier after Boeing arrogant CEO almost destroyed them. It’s part of Airbus. Boeing is loaded with military orders.
After destroying GE and Bombardier Macron became a PM.
He also destroyed Alstom.
I know.
It’s not like China is a long-term market for US or Airbus planes. China’s goal is always the same. They replicate someone else’s technology and then build their own making improvements if they can. For Boeing and Airbus it was just a matter of time before the Chinese market was closed. Trump’s actions only accelerated the timeframe. The flip side is that Chinese planes will not make inroads into Western markets and that it will be harder for them to rachet up the technology tree in civil aviation.
They said the same about Japanese cars.
Review the sand islands China built in South China Sea. China ain’t Japan.
I don’t think Airbus can increase production that much.
China, a country with no government regulations, should be able make every passenger jet they need within 3 years.
If not sooner.
Boeing is DOA. Tariffs just sped up the process.
How Much Of Boeing’s Revenues Comes From The U.S. Government?
An Overview of Boeing’s Revenues
Boeing’s 4 divisions are expected to make $92.3 Billion for the full year of 2019.
In terms of Customer, Boeing’s Expected Revenues of $92.3 Bil in 2019 can be divided into 2 categories:
More fake news
The jannies from Goldman come in to sweep it up….
Goldman: “China Doesn’t Move Needle For Boeing Right Now”
zerohedge . com/markets/trade-war-turbulence-china-halts-boeing-jet-deliveries-airlines
China and jet liners.
Explainer | How monumental is China’s challenge to build its own jet engine for the C919 as it seeks aviation self-reliance? | South China Morning Post
Or the fully made in Russia MS21.
I for one would not be flying on any Chinese airline that is not doing proper maintenance of their Boeing aircraft.
It’s one thing to stop accepting new planes, it’s quite another to stop maintaining the existing ones properly. That should send shivers down the spines of any Chinese citizen who has to fly on a Boeing plane.
And ALWAYS stay away from Russian planes!
Here is one airline pilot’s blog on the complexities of airline delivery.
https://www.youtube.com/watch?v=kMC–S-KfiA
In my opinion, there was time to end this chitshow of globalized just-in-time manufacturing, where production distribution isn’t done on cost or prowess, but winning potential customers.
The manner in which is done, should make the the lunatic asylum proud.
I said this before, I think. This is not a “tariff war”. Its a war. What are that odds that the bioweapon bat research in Wuhan, paid for by the biowarfare complex here, was released accidentally on purpose? Ah, but by whom? That’s the difficult part. We are in an inflationary wave from the Covid stimulus and then the addiction to the stimulus with things like the Inflation Reduction Act. Or IRA which is fitting because it has been blowing up the economy and the middle class. So, origin China. How much did that cost? Steel, oil, Pearl Harbor, who knows, maybe just an excuse for realignment. But war none the less.
Where did the Covid hit first & hardest? China & Iran.
Perhaps that answers any questions about who released it.
We know the whole thing was handled by the NatSec complex (in Europe Nato & counter-Intel had the lead, as revealed by health ministers there). There are documents (“Red …) which reveal that the US thought it could cope better with any pandemic because of its superior healthcare infrastructure. LOL
us is joining israel as world’s pariah. not good for business or life.
Not exactly “breaking news”
Maybe not, but a cause for concern, surely?
did you expect some comment on a backwater blog to be breaking news, sweetie heart? bless your heart.
airbus much nicer experience as a business class passenger a few times per year past few decades.
@Mish The comment “… but China does not get maintenance parts if and when needed.” ignores a key item – the Chinese are masters of copying an existing thing. They might produce lower quality but they can produce a working item in a fraction of the time we might think it will take.
A toilet paper holder yes. Jet turbines, not so much.
I would discourage underestimating what they can do.
In China, if you are 1 in a million – then there are 1000 more.
Let us know if you are willing to go fly on Boeing aircraft maintained by Chinese replicated parts.
@TexasTimes – you miss the point. They may have planes go down – but they will survive – and, for me, sadly the US will suffer more than the Chinese.
But it’s ok to fly on a US aircraft maintained in South America, cause why not, it will probably stay in the air till the next airport, maybe.
Kind of like the Japanese in the 1950’s, when “Made in Japan” was the joke.
Till they started making cars – then they were a joke no more.
And South Korea is catching up to Japan. American cars are a distant 3rd maybe 4th.
Trade trump to china.we don’t want the loser.
https://twu514.org/files/2018/05/The-Impact-of-Offshoring-Aircraft-Maintenance-to-Foreign-Repair-Stations.pdf
Maybe China is not the loser on maintenance, we are sending our planes there for maintenance already…. Wonder what the backlog on maintenance inventory is?
It is not a trade war that nobody can win. The only big loser will be the US. The rest of the world may suffer, but it will sirvive.
America as a brand has been sharply devalued by Trump’s great tariff stupidity. Even Starbucks and McDonald seem already to face a backlash across much of the world (notwithstanding that many of their outlets are actually owned locally). That large US trade in services surplus may soon not be that large anymore. The secondary bad effects of stupid policies are widely underestimated.
Looks like Stars (previously Starbucks) and Vkusno & Tochka (previously McDonald’s) can expand beyond Russia now.
As a brand? Ok. Yeah, no.
The Usonian brand lost its shine to the rest of the world when the US destroyed Iraq based on lies. Of course, to the discerning Usonian, when they destroyed Vietnam and thousands of citizens gratuitously.
Trump himself just accelerated the demise of the Usonian empire. In his first term, convincing that the US are incapable of honoring treaties. In Biden’s term, that the dollar and its financial system are a liability. In Trump’s second term, that the US are not a trustworthy trade partner.
As long as the US go quietly into the sunset, which is regrettably unlikely, the world is going to be a better place for all, including the US.
I liked it better when you were taking pot shots at Biden.
“I liked it better when you were taking pot shots at Biden.”
I take pot shots at whoever deserves them.
The party in power tends to get the most of them
This is saying “I liked it better when Biden was president”.
Even when we make stuff, it’s bad. Look at BOEING! Its not like it’s a good product anymore. AirBus has been eating marketshare for decades ever since McDonnell Douglas merger and their dirtbag management took over
Remember guys…production can’t return to the US for years because we are too stupid to make anything…and we all have lead brains.
“Ready To Start Production”: AMD Prepares For First Made-In America Chip
zerohedge . com/technology/ready-start-production-amd-prepares-first-made-america-chip
AMD started this in 2021. It HAS taken over 4 years. Look up facts – they do still matter.
At the same time wrt you I agree “…we are too stupid to … and we all have lead brains.”
“Look up facts – they do still matter.”
Whoa, you mean Trump didn’t do this in the 3 months he’s been in office?
Oh well, plenty more wins to come over the next 12 years. Too bad you’ll miss it, given your fully vaxxed and boosted status.
Yes, AMD used funding from Biden’s Inflation Reduction Act to return production here. TSMC, Intel and Apple are all spending $100’s of billions to produce in the US thanks to the IRA. Fortunately, Trump will take credit for all of it. Because Americans like Their Presidents to have integrity.
Congrats. You just disagreed with yourself.
Welcome to TDS level 2
You do realize, I hope, that USA is the second largest exporter in the world after China.
These trade war strategies seem to be often –Winging It — and now even Boeing seems to be in a tailspin.
The crashes, blown doors and cheap construction didn’t help
not to mention the DEI
Will not fly on a 737-800. Period.