Amid the ongoing economical-tarrif war between the US and China, China made a strong move by raising tarrifs on US manufactured goods by 125℅. Now, the Chinese leadership is considering halting deals with important US-based companies, like airplane manufacturer Boeing.
A batch of 10 Boeing 737 Max jets was being prepared to join Chinese airlines. Reportedly, if the delivery paperwork and payment on some of them was completed before the Chinese reciprocal tariffs came into effect, the planes "may still be allowed to enter the country".
These restrictions mark a serious blow for Boeing and other US manufacturers trying to navigate the escalating trade war between the two biggest economies.
Shares of Boeing have already been falling due to worries about the impact of the trade tariffs, amid longstanding complaints from shareholders that the company has underinvested in its engineering. The company has lost 7% of its market value since the start of the year, and in March its chief financial officer, Brian West, said tariffs could hit availability of parts from its suppliers.
The head of budget airline Ryanair, Michael O’Leary, has said his company could "delay taking deliveries of Boeing aircrafts if they become more expensive".
O’Leary told the Financial Times that Ryanair was due to receive a further 25 aircrafts from Boeing from August but would not need the planes until around March or April 2026.
“We might delay them and hope that common sense will prevail,” he told the Financial Times.