China Cancels Boeing Orders from U.S. as Tariff War Soars

April 16, 2025 | 02:46 pm

TEMPO.CO, Jakarta - China has directed its airlines to suspend all Boeing aircraft orders from the United States, in response to a newly imposed 145 percent import tariff on Chinese goods entering the U.S. As retaliation, China introduced its own 125 percent tariff on American products over the weekend.

Beijing has also urged Chinese airlines not to purchase aircraft-related equipment from American companies. As reported by the New York Post citing Bloomberg, this directive came after the tariff war between the two countries. The substantial import tariffs will double the cost of aircraft and spare parts made in the U.S.

Following the cancellation of orders by China, Boeing's stock fell by 3 percent on Tuesday. China is cited as one of Boeing's largest markets.

The Chinese government is seeking ways to provide assistance to airlines that lease Boeing jets and face higher maintenance costs. There has been no official comment from Boeing.

Boeing is highly vulnerable to trade disputes between the U.S. and its trading partners. Unlike many multinational companies, Boeing builds all of its aircraft in U.S. factories before delivering nearly two-thirds of its commercial planes to customers outside the United States.

As reported by CNN, Boeing is a major part of the U.S. economy, contributing approximately US$79 billion and supporting 1.6 million jobs directly and indirectly. The company has nearly 150,000 American employees.

Over the past six years, Boeing has been struggling due to continuously declining profits. Since 2018, Boeing has incurred operational losses of US$51 billion, with the last year being the only year the company reported an annual profit. China, being the world's largest aircraft purchasing market, is estimated by Boeing's latest analysis to buy 8,830 new aircraft over the next 20 years.

In addition to canceling Boeing orders, earlier this month, China also halted the shipment of rare earth metals and magnets essential for U.S. production across various industries. Rare earth minerals are needed in industries ranging from mobile phones to fighter jets.

On April 3, 2025, China stopped exporting seven heavy rare earth metals and exclusively processed magnets. The export suspension applies to all countries, but access to elements such as dysprosium and yttrium is crucial for U.S. industries.

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