China Hits Boeing
The Chinese government has told the country's domestic airlines to stop accepting deliveries of Boeing jets as a trade war between the world's two largest economies escalates, Bloomberg News reports.
China is also instructing its carriers to stop buying airline parts and other components from U.S. companies, according to Bloomberg, which cited people familiar with the situation.
Boeing declined to comment. The aviation giant's shares fell $2.59, or 1.6%, to $156.74 in morning trading.
The order to stop accepting Boeing jets comes after China boosted its retaliatory tariffs on U.S. goods to 125%. That matches the level of tariffs that President Trump has placed on Chinese imports, although those taxes can rise as high as 145% for some products. China's tariffs would have more than doubled the price of U.S.-made aircraft and parts, making the cost unaffordable, Bloomberg reported.
Boeing is scheduled to ship about 10 737 Max aircraft to Chinese carriers, including China Southern Airlines, Air China and Xiamen Airlines, Bloomberg reported, citing data from Aviation Flights Group. During the first quarter, Boeing delivered 130 aircraft in all, including more than 100 737 jets, the company said on April 8.
Ironically, President Trump (who hasn't met a deal he didn't want to tear up) is accusing China of "reneging" on a previously agreed-upon arrangement.
Hmm..."Boeing and China..." why does that sound familiar?
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