China halts Boeing jet deliveries in escalating trade dispute with US

China has reportedly ordered its airlines to suspend deliveries of Boeing aircraft, a significant escalation in the ongoing trade conflict with the United States.

The directive, revealed by Bloomberg and citing sources familiar with the matter, also instructs Chinese carriers to stop purchasing aviation equipment and parts from American companies.

This move follows Beijing’s announcement of steep retaliatory tariffs — up to 125% — on a broad range of US goods over the weekend. In response, the Chinese government is said to be exploring ways to support domestic airlines leasing Boeing jets, now facing increased costs.

Currently, around 10 Boeing 737 Max aircraft are awaiting delivery to Chinese airlines. According to Bloomberg’s sources, if payment and documentation were completed before the new tariffs took effect, some of these jets might still be allowed into the country.

The restriction deals a fresh blow to Boeing, already under pressure from trade tensions and internal criticism over underinvestment in engineering. The company’s shares have fallen 7% since the start of the year. In March, Chief Financial Officer Brian West warned that tariffs could affect the availability of key components from suppliers.

Meanwhile, Ryanair CEO Michael O’Leary told the Financial Times that his airline may delay the delivery of 25 Boeing aircraft scheduled from August. “We might delay them and hope that common sense will prevail,” he said, noting the planes aren’t urgently needed until early 2026.

Market volatility has continued amid shifting trade policies. After initial turmoil sparked by Donald Trump’s tariff rollout in early April, US stocks showed signs of recovery this week following the administration’s suggestion that tariffs on smartphones and laptops might be postponed. The S&P 500 rose 0.8% on Monday but remains down roughly 8% year-to-date.

Asian markets also rebounded, with Japan’s Nikkei and South Korea’s Kospi each gaining nearly 1%, led by carmakers such as Honda, Suzuki, and Hyundai. Trump’s pledge to support the auto industry after imposing 25% tariffs on foreign car imports, excluding Mexico and Canada, may have driven the gains. Analysts warn the move could slash auto sales in the US and Canada by as many as 1.8 million vehicles this year.

By Tamilla Hasanova