China orders airlines to stop orders of Boeing aircraft amid trade war with US

China is ordering its airlines to halt any further orders of Boeing jets as a trade war with the

United States continues. The announcement comes as President Trump's enforcement of tariffs as high

as 145 percent on Beijing goods continues, and so do Beijing's reciprocal tariffs on American goods

The news comes in a report Tuesday from Bloomberg, citing people familiar with the matter who wish to

remain anonymous. China also reportedly directed the nation's carriers to stop purchasing aircraft

equipment and parts from U.S. companies. Beijing's move follows its announcement and implementation

of 125 percent retaliatory tariffs on U.S. imports over the past weekend. Sources tell Bloomberg

those levies alone would have more than doubled the cost of U.S.-made aircrafts and parts

making it illogical for Chinese airlines to order more Boeing planes. The Chinese government is also

weighing options to provide help to airlines leasing Boeing jets and now dealing with higher

costs. Shares of Boeing, which views China as one of its biggest potential growth markets and where

Airbus currently holds the upper hand were down 3 in pre trading Tuesday while Airbus shares were up 1 The trade dispute between Beijing and Washington is putting more pressure on an already struggling

industry. While about 10 Boeing 737 MAX jets are reportedly preparing to join Chinese airlines

fleets, some remain near Boeing's factory in Seattle, and others are at a finishing facility

in eastern China. Some finished planes already purchased and finished may be allowed into China

on a case-by-case basis. Boeing previously warned a trade dispute with China could have harmful

consequences for an airline industry already struggling to dig out of lagging sales from

the COVID-19 pandemic as travel slowly ticks up globally. It's also a blow to Boeing as China is

forecast to make up 20 percent of the world's aircraft demand over the next two decades

Boeing has also failed to get a major order from China in the wake of a pair of deadly plane crashes

and high-profile safety issues, including a door plug flying off midair on an Alaska Airlines flight last year

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