Boeing Shares Fall as China Blocks Deliveries Amid Trade War/ Newslooks/ WASHINGTON/ J. Mansour/ Morning Edition/ Boeing’s stock dropped Tuesday after reports emerged that China had halted all aircraft deliveries in response to the ongoing trade war. The move threatens billions in future business and deepens financial struggles for the U.S. plane maker, which hasn’t turned a profit since 2018. China’s decision further isolates Boeing from its second-largest aviation market.
China Halts Boeing Deliveries Amid Trade War – Quick Looks
- Boeing Shares Fall: Stock dropped 2% after China reportedly halted jet deliveries
- Trade War Tensions Rise: Chinese move seen as retaliation to U.S. tariffs
- No Official Response Yet: Chinese regulators, Boeing, and White House remain silent
- Deliveries Critical for Boeing Revenue: Company only gets paid upon aircraft delivery
- Long-Term Financial Struggles: $51B in losses since 2018, no profit in six years
- Chinese Market Frozen: No commercial jet orders from Chinese airlines since 2018
- Tariff Impact Severe: 125% Chinese import tariffs make Boeing jets unaffordable
- Aircraft Inventory Piling Up: 55 undelivered jets, mainly for China and India
Boeing Shares Fall as China Blocks Deliveries Amid Trade War
Deep Look
NEW YORK — Boeing’s financial woes deepened Tuesday as shares slid 2% following reports that China has suspended all deliveries of its commercial jets, further inflaming an already volatile trade war between the two economic giants.
According to a Bloomberg report, Chinese aviation authorities have directed domestic airlines to stop accepting deliveries of Boeing aircraft, delivering a sharp blow to the U.S. plane maker. Neither the Chinese government, Boeing, nor the White House have yet issued official comments on the matter.
The move follows a broader trend of escalating tensions after the Trump administration imposed 145% tariffs on Chinese goods, prompting retaliatory measures — including a 125% tariff on U.S. imports, which effectively prices Boeing jets out of reach for Chinese buyers.
A Blow to a Fragile Recovery
Boeing, which hasn’t posted a profitable year since 2018, has accumulated $51 billion in operating losses. The company’s dependency on international buyers — two-thirds of its planes are shipped overseas — makes it especially vulnerable to global trade friction.
Despite persistent issues, Boeing still plays a vital role in the U.S. economy, estimating it contributes $79 billion annually and supports 1.6 million American jobs, including its 150,000 U.S.-based employees.
China: A Market Lost?
Once a booming customer base, Chinese orders for Boeing aircraft have dwindled sharply since 2019. In 2017 and 2018, Chinese customers placed orders for 122 planes. In the six years since, only 28 planes were ordered — largely freighters or purchased by leasing companies, not airlines.
No Chinese airline has directly ordered a Boeing passenger jet since the twin disasters involving the 737 Max. Following fatal crashes in 2018 and 2019, China was among the last to lift its ban on the model, even after other countries reinstated its use in late 2020.
Deliveries to Chinese customers had only begun to resume in 2024, but those plans are now in limbo.
Why Deliveries Matter
Boeing’s financial model depends heavily on completed deliveries — the point at which most of the aircraft’s cost is paid. The company currently has 55 planes sitting in inventory at the end of 2024, many of them intended for Chinese and Indian clients.
With deliveries paused and tariffs making new deals unfeasible, Boeing is left in a precarious position — caught between geopolitical chess matches and financial strain.
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