China has told its airlines to stop accepting Boeing deliveries. This move is seen as a response to the US tariffs imposed by former President Donald Trump. The tariffs, reaching as high as 145%, have significantly impacted global trade.
The aviation industry is caught in the middle of this trade war. Plane makers, airlines, and suppliers are reviewing multi-billion-dollar contracts. Howmet Aerospace, a US-based aircraft engine manufacturer, recently raised concerns about who should bear the increased costs due to tariffs.
Three major Chinese airlines – Air China, China Eastern Airlines, and China Southern Airlines – were set to receive 45, 53, and 81 Boeing planes respectively between 2025 and 2027. However, with the new directive, these deliveries are now uncertain.
Impact on Airlines
The Chinese government’s decision will likely increase maintenance costs for airlines. They are also being asked to stop buying aircraft parts from US companies. Airlines leasing Boeing jets are expected to face higher expenses.
The Chinese government is exploring ways to support these airlines. The trade tensions between the US and China continue to affect various industries, including aviation.
The original report was cited from Channel News Asia.