Boeing (BA, Financial) just hit turbulence—again. This time, not from quality issues or safety headlines, but from China's latest move in the escalating U.S.-China trade standoff. Beijing has ordered domestic airlines to freeze all new Boeing jet deliveries and halt purchases of U.S. aircraft parts, following Trump's decision to slap a blanket 145% tariff on Chinese goods. In response, China fired back with a 125% levy on U.S. imports—aircraft included. The result? Boeing shares slid 3.3% in premarket trading at 8.33am today, and the outlook just got murkier in one of its most vital markets.
Roughly 10 Boeing 737 Max jets are stuck in limbo—either parked in Seattle or awaiting clearance in Zhoushan. Some may still squeak through if payments were made before the tariffs kicked in, but that's a narrow window. China used to take nearly a quarter of Boeing's output and was projected to account for 20% of global aircraft demand in the next two decades. But years of trade tension, safety scandals, and now tariffs have choked off Boeing's China pipeline. Juneyao Airlines already delayed a 787 Dreamliner delivery. The rest of the industry may follow suit.
The bigger problem? Boeing's not just losing sales—it's losing future relevance. Airbus is quietly dominating China's order book, and domestic player Comac is scaling up fast. Meanwhile, Boeing is still sitting on a stockpile of planes once earmarked for Chinese airlines. Add in the supply chain risk and a shaky post-COVID recovery, and it's clear: the skies aren't clearing anytime soon. For investors hoping for a Boeing-China détente, this latest move signals just how fragile that runway really is.
