U.S. aviation giant Boeing, fresh off a crippling labor dispute and quality control crisis, has now found itself drawn into the escalating trade conflict between Washington and Beijing.
The largest U.S. exporter, Boeing has been caught in the crossfire after President Donald Trump imposed new tariffs of up to 145 percent on many Chinese products, sparking retaliatory 125 percent levies from Beijing.
The duties more than double the cost of aircraft and spare parts manufactured in the United States.
On Tuesday, Trump accused China of reneging on a "big Boeing deal," following a Bloomberg news report that Beijing ordered airlines not to take further deliveries of the company's jets.
The report also said that Beijing requested Chinese carriers to pause purchases of aircraft-related equipment and parts from U.S. firms.
Boeing has declined to comment on the matter.
Last week, Bloomberg reported that China's Juneyao Airlines was delaying delivery of a Boeing widebody aircraft as the growing trade conflict drives up costs of big-ticket products.
Boeing's website shows its order book at the end of March contained 130 aircraft due to Chinese customers, including airlines and leasing companies.
But as some buyers prefer to remain anonymous, the true figure could be higher.
Bank of America (BofA) analysts note that Boeing is scheduled to deliver 29 aircraft this year to identified Chinese companies, but added that a large portion of unidentified customers who bought aircraft are actually Chinese.
"China represents about 20 percent of the market for large civil jets over the next 20 years," BofA Securities said in a note.
It added that the U.S. administration cannot ignore Boeing when it considers trade balances.
"Boeing is the U.S.'s largest exporter, as such, we are not surprised by China's move; however, we do see this as unsustainable," BofA Securities said.
Boeing's main competitor Airbus cannot be China's only supplier of large commercial jets given its capacity constraints, it said.
The Commercial Aircraft Corporation of China (COMAC) is also "highly dependent on U.S. suppliers," the analysts said.
If China stopped buying aircraft components from the United States, COMAC's C919 program -- a competitor to Boeing's 737 or Airbus's A320 -- would be halted, they said.
A delivery blockage would affect the United States' trade balance further as well.
Boeing's production slowed significantly after quality issues that emerged with an in-flight incident in January 2024, and two factories were subsequently paralyzed by a strike in the fall.
According to US official data, commercial aircraft exports reached $4.2 billion in August last year but dropped to $2.6 billion in September. They slipped further in October and November.
In December, when Boeing deliveries gradually resumed, the amount rose to $3.1 billion.
Boeing CEO Kelly Ortberg previously stressed that the company supports 1.8 million jobs in the United States.
A delivery freeze would have direct consequences for the group, which traditionally receives 60 percent of the price upon delivery.
With its difficulties of 2024, Boeing is already dipping heavily into cash flow that has been depleted by the Covid-19 pandemic and other issues.
Besides concerns surrounding Beijing, Boeing will likely be squeezed by higher duties too.
Michael O'Leary, CEO of Ryanair, Europe's largest airline by passenger numbers, said on Tuesday his company might postpone delivery of 25 Boeing jets expected from August if they cost more customs duties.
Ryanair, a major Boeing customer, notably placed an order in May 2023 for 300 737 MAX 10s, including 150 firm orders, for a list price estimated at over $40 billion.
Ed Bastian, CEO of Delta Air Lines, said last week that he does not intend to pay customs duties on the Airbus aircraft he expects this year.
© 2025 AFP
27 Comments
Login to comment
TokyoLiving
Well done China, this is Chinese dignity !!!..
Go to a USA person's house...
What are you going to find? Everything in that house is made in China...
Go to a Chinese person's house...
What are you going to find? Everything in that house is made in China...
Chinese people have NOTHING made in the US. The only thing from US, Chinese people have is an iPhone that's assembled in China.. LOL..
China doesn't need anything from the US, and if it ever needs something, it can get it through other markets.. The US is not essential to China's survival..
The Trump's so-called "liberation day" only lasted ONE WEEK..
Trump has had to retract his cruel and unfair economic bribery measures against the free world..
The fragile and dependent US economy is increasingly losing ground against China, and if Trump continues with its stupid, megalomaniacal attitude, he will inevitably lead the country into a big recession..
The US is very naive and arrogant to believe that it can defeat a 5,000-year-old civilization..
The future is RED !!...
Desert Tortoise
China cannot yet make modern commercial aircraft avionics or reliable jet engines. The Russian stuff can't pass airworthiness certification for international commercial use. The Chinese rely entirely on US made avionics. So too do the European manufacturers. Companies like Honeywell, Collins and King have no counterparts in China or anywhere else for that matter.
China also doesn't make oil drilling equipment. All those big deep sea oil rigs that come out of Chinese yards are filled with US made drilling equipment. There are literally no substitutes made outside the US. Same for a lot of petroleum industry controls. China would dearly love to sell more rigs to Iran but cannot because they use US made drilling equipment. Lack of access to US drilling equipment is one of the reasons Venezuela cannot access much of its remaining oil reserves. They need US fracking and steam injection technology to move the oil to the surface.
Wasabi
A new win for trump, Bravo!!!
I'veSeenFootage
Or, as MAGA puts it, "Winning!"
GBR48
Nationalists cost you money and break everything.
Will there come a point when the Republicans accept that the damage to their country isn't worth it, or are they happy with slash and burn politics across all aspects of American society, targeting the biggest brands, companies, universities and other institutions.
Eventually the Tories got rid of Boris and Liz. But it may not even be possible for the Republicans to get rid of Trump.
SomeWeeb
Everything made in china is garbo anyway. No standards, toxic materials, child/slave labor. People just buy it cause they are poor. Cheap plastic at huge markups with no end-game.
Anyway Trump will just cave in another week or two and exempt boeing from tarrifs.
I'veSeenFootage
The latter. Republicans are willing to sell their own families as long as they get their tax cuts.
Nathaw
China cannot yet make modern commercial aircraft avionics or reliable jet engines. The Russian stuff can't pass airworthiness certification for international commercial use.
It is a logical correct analysis. US is still the market leader of Aero Space industry. First manned aircraft was invented by unsung heroes of Wright brothers who were the bicycle repair men from Dayton, Ohio of US. The reason of Russia is not using fighter jets in Ukraine war is they can not manufacture quite a lot like US.
However making air craft engine needs touch, adaptable and strong turbines. Making turbine needs rare earth elements. China control the rare earths supply 90 % for the market share. Without rare earths, US can not manufacture Jet engine turbines as well. US needs China as supplier of raw materials. If China stop supplying rare earth elements to Japan, many consumer electronics manufacturers will need to stop production.
Having expertise without vital raw materials and inventory of parts like a taking swimming lesson without a swimming pool.
China also doesn't make oil drilling equipment. All those big deep sea oil rigs that come out of Chinese yards are filled with US made drilling equipment.
It lacks the sophisticated skills which US have researched and developed for a long time. Now a days, many types of oil drilling equipment rely on raw materials produced in China. Specifically, equipment like drilling rigs, work over rigs, and various parts of drilling rigs utilize materials like steel, various alloys, and components that China is a major supplier.
US likes an engineer who designed, perfected and developed products. However an engineer alone can not run the factory. Making products need raw materials, spare parts, machinery, water and energy supply.
US and China are unhappy couple who are proceeding for divorce. However there are complex interdependence between them. US have expertise and technology. China control the raw materials and supply chain of parts for the machinery.
Building supply chain networks and industrial zones can not happen overnight.
HopeSpringsEternal
It'll all get worked out, as world needs planes badly, they are way behind on deliveries relative to growth in travel and it will take MANY years to catch up!
ArtistAtLarge
Airbus is laughing.
Desert Tortoise
Airbus uses US made avionics too.
Desert Tortoise
Rare Earth elements are abundant in the US. In fact they are anything but rare. China mostly controls the processing of these elements but that is changing fast as the owners of Mountain Top Mine on California complete their processing facilities in the US.
Desert Tortoise
Lololol. None of the ten deepest oil rigs were built in China. Most were built in the US, a few were built in Norway or Finland.
USNinJapan2
Erik
You may want to tell Xi Jinping before he runs out of parts for his presidential aircraft, a BOEING 747.
USNinJapan2
Erik
You'd think he would have been flying around in an Airbus all along... Hmmmm.
David K Anderson
Which will contain avionics from Colling Aerospace and Honeywell. Eventually replacements could arise, but these aren't items (radar systems, flight management systems, etc.) that can go from a clean sheet to delivered finished product quickly. Time scales would be measured in months and years.
Trade wars are just not worth it.
BigNaraDeer
@David I am quite sure that China and India would want to develop their own aeronautics even without a trade war for economic and national security purposes.
DeeZee
COMAC will be ready, Things like these tend accelerate development that otherwise wouldn't happen in a peacetime situation. The decoupling has already begun and now it's time to throw away the last dependencies of American industry. When that happens then China's hand will be completely free and China can take Taiwan without worrying about the consequences from the U.S. Just like how the sanctions on Russia have freed their own hand.
Peter Neil
US wells are being shut down, and no new wells being drilled, so not much demand for drilling equipment.
Peter Neil
The US has limited people with knowhow to process rare earths.
The investment to build will be large and the time to build will extend beyond this administration.
Defunding science and engineering at universities won’t make it any easier.
TaiwanIsNotChina
Yeah I'm sure we can't figure that out (eyeroll).
Hercolobus
When you start a trade war, you have to consider all possible repercussions.