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Travel Radar - Aviation News > News > Aviation > Airline Economics > Boeing Faces Major Setback as China Halts All New Orders
Airline EconomicsAirlinesManufacturing

Boeing Faces Major Setback as China Halts All New Orders

Finlay Shaw
Last updated: 16 April 2025 18:57
By Finlay Shaw 5 Min Read
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China Airlines Boarding.
China haults any trade with Boeing © Markus Winkler
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China has reportedly suspended all future orders for Boeing aircraft amid the escalation of the trade conflict with the Trump Administration in the United States. The country represents one of the largest aircraft markets and has historically comprised as much as 25% of Boeing’s production.

China Airlines
Boeing to take massive hit after orders stop from China © China Airlines

Chinese Aviation Sector Freezes Boeing Purchases Amid Government Directive

The Chinese government has instructed domestic airlines to suspend purchases of aircraft-related equipment and components from American companies, Bloomberg News reported. The directive follows China’s decision to raise retaliatory tariffs on U.S. goods to 125% on Friday, a response to President Donald Trump’s tariffs on Chinese imports that now reach as high as 145% for certain items. The new tariffs are expected to significantly increase the cost of U.S.-made aircraft and parts, effectively pricing them out of the Chinese market.

In a move that could impact Boeing directly, Chinese regulators are also said to be considering measures to support airlines leasing Boeing jets that are now facing increased financial pressure. Roughly 10 Boeing 737 Max aircraft are currently being readied for delivery to Chinese carriers. If final payments and paperwork were completed before the tariffs took effect, some of those planes may still be allowed into the country sources said.

The latest restrictions represent a significant setback for Boeing and other aircraft manufacturers caught in the crossfire of the worsening trade dispute between the world’s two largest economies.

Ryanair’s Group CEO, Michael O’Leary, has signalled that his airline may postpone incoming Boeing aircraft deliveries if trade tensions continue to inflate costs. Speaking to the Financial Times, O’Leary said Ryanair was expecting 25 new Boeing jets starting in August, but noted the aircraft wouldn’t be essential until early 2026.

O’Leary commented that

“We might delay them and hope that common sense will prevail”

Boeing’s stock has been under pressure amid investor concerns over the broader impact of tariffs and criticism that the company has underinvested in core engineering capabilities. The aerospace giant has seen its market value decline by 7% since the beginning of the year. In March, CFO Brian West warned that trade barriers could disrupt the flow of components from suppliers.

Meanwhile, European rival Airbus is also feeling the ripple effects. CEO Guillaume Faury told shareholders on Tuesday that the company is closely monitoring the shifting tariff landscape. He added that Airbus is experiencing delivery issues from U.S. supplier Spirit AeroSystems, which is currently affecting the production of its A350 and A220 aircraft models.

Boeing declined to comment on the report. Following the news, its shares dropped $2.59, or 1.6%, to $156.74 in morning trading.

China has condemned the US tariffs, labelling them as “unilateral bullying.”

China Airlines
President Trump stated he is hoping for trade agreements with the UK indicating the tariff war with China may prevail for the time being © Jeffry S

A Little Background About Boeing

Founded in 1916, The Boeing Company is one of the world’s largest aerospace and defence manufacturers, headquartered in Arlington, Virginia. It is a leading producer of commercial jetliners, military aircraft, satellites, and space systems.

Boeing’s commercial aviation division is best known for its 7-series aircraft, including the 737, 777, and 787 Dreamliner.

The company has long relied on global supply chains and international markets—particularly China, one of its largest customers—for aircraft sales and parts sourcing.

In recent years, Boeing has faced a series of challenges, including safety concerns over its 737 Max line, production delays, and growing competition from European rival Airbus.

Boeing Aircraft landing
Boeing’s has relied on China for many years © Nguyen Hung

What do you think about the tariff war impacting Boeing? Let us know below!

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Finlay Shaw
By Finlay Shaw
Aviation Reporter and Editor - With a passion for exploring the skies through the lens of storytelling. Currently a student of Film and Broadcast Production, Finlay intends to bring a unique blend of technical expertise and creative insight to writing.
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