US and China trade war escalates as Beijing orders its airlines to halt Boeing jet deliveries and stop purchasing parts from American firms

The Chinese government has asked carriers to stop purchases of aircraft-related equipment and parts from American companies, according to a report from Bloomberg, which cited people familiar with the matter. The Chinese government has asked carriers to stop purchases of aircraft-related equipment and parts from American companies, according to a report from Bloomberg.

The order from Beijing reportedly came after it announced its retaliatory tariffs of 125% on US goods over the weekend. Beijing is considering ways to support airlines that lease Boeing jets and are facing higher costs, according to the report.

The restriction marks a serious blow for Boeing and other manufacturers trying to navigate the escalating trade war between the two biggest economies. The boss of the 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 aircraft from Boeing from August but would not need the planes until around March or April 2026. Boeing 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 US administration previously announced a 25% tariff on all imports of foreign cars, excluding some exemptions for Mexico and Canada. Analysts at the advisory firm Telemetry predicted the move could result in 1.8m fewer car sales in the US and Canada this year.