In this file photo the Boeing logo is pictured at its Renton Factory, where the Boeing 737 MAX airliners are built in Renton, Washington on April 20, 2020.
April 16, 2025
Boeing woes!
Airline faces fresh crisis with US-China trade war
NEW YORK, United States (AFP) — US aviation giant Boeing, fresh off a crippling labour dispute and quality control crisis, has now found itself drawn into the escalating trade conflict between Washington and Beijing.
The largest US exporter, Boeing has been caught in the crossfire after President Donald Trump imposed new tariffs of up to 145 per cent on many Chinese products, sparking retaliatory 125 per cent levies from Beijing.
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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.
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The report also said that Beijing requested Chinese carriers to pause purchases of aircraft-related equipment and parts from US firms.
Boeing has declined to comment on the matter.
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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 per cent of the market for large civil jets over the next 20 years,” BofA Securities said in a note.
It added that the US Administration cannot ignore Boeing when it considers trade balances.
“Boeing is the US’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 US suppliers”, the analysts said.
