Trump: China Has 'Reneged' on Boeing Deal

Boeing is caught in the middle of the US-China trade war and it might end up stuck with aircraft that Chinese buyers won't accept. Sources tell Bloomberg that China has ordered the country's airlines to stop taking deliveries of Boeing aircraft, as well as parts and equipment from American companies. The sources say the order came after China raised retaliatory tariffs on imports from the US to 125%, more than doubling the cost of US-made aircraft and parts. In a Truth Social post Tuesday, President Trump said China "just reneged on the big Boeing deal, saying that they will 'not take possession' of fully committed to aircraft."

Boeing, which builds all of its aircraft in the US, doesn't get most of its payment until the finished product is delivered, CNN reports. The company has seen a steep decline in sales to China since 2018, but it has delivered 13 737 Max jets and three 787s to the country this year, with 28 Max and one 787 still to be delivered, JPMorgan analyst Seth Seifman says, per Bloomberg. Chinese airlines have hundreds of older Boeing aircraft in their fleets that will need parts as time goes by, but Bloomberg's sources say the carriers have been stockpiling spare parts for years. (More Boeing stories.)