China stops US-made Boeing jet deliveries as trade war expands: Report

Beijing has ordered the immediate stoppage of any purchases related to aircraft machinery and equipment from US companies, escalating the trade war between the two nations.

In Short

• Trump's 145% levy on Chinese imports escalates trade war
• China to support domestic airlines renting Boeing planes
• Boeing parts to cost China nearly double

China on Tuesday directed its airlines not to order any deliveries from Boeing Co., after Beijing imposed a steep 125% retaliatory tariff on all US products over the weekend in response to Donald Trump's 145% levy on Chinese imports, escalating the trade war between the two nations.

Beijing has ordered the immediate stoppage of any purchases related to aircraft machinery and equipment from US companies, reported Bloomberg.

The Bloomberg report further states that the Chinese government is looking to provide impetus to domestic airlines that are renting Boeing planes to offset rising costs due to high tariffs.

Amid the trade war, Boeing parts and aircraft will cost China nearly double, stated the report.

US aircraft giant Boeing has been caught in the crossfire in the ongoing trade war between the world's two largest economies.

With no signs of waning, the trade war seems to have affected Boeing's largest market, China. According to the Bloomberg report, 20% of the global aircraft demand will come from China in the next 20 years. In fact, in 2018, China accounted for nearly 25% of Boeing's aircraft.

This development comes two days after China's Commerce Ministry urged the US to "completely abolish" the 145% duty on Chinese imports.

Last week, Trump, in a U-turn, exempted some tech products from the ongoing tariff war, in a huge relief to tech giants like Apple, which manufactures and assembles the majority of its products in China, and US consumers.

However, Trump's constant back-and-forth on tariffs has kept the world on the edge.