Trade Tariff War Escalates, China Rejects Boeing Jets!

In a big move, China has stopped all jet orders from US aircraft maker Boeing. This comes after US President Donald Trump imposed heavy tariffs, up to 145%, on Chinese goods. China has also decided not to buy any aircraft-related equipment from American companies. But will this decision really impact Boeing or the US trade deficit? Let’s break it down in simple terms.

China’s decision is a reaction to the high tariffs set by the Trump administration. These tariffs make Chinese goods more expensive in the US, hurting China’s economy. Experts say China’s economy is already slowing down due to these trade barriers and its own economic challenges. With less demand for air travel in a slowing economy, China needs fewer planes. Cancelling Boeing orders is an easy choice for them right now.

According to financial experts and market analysts, Boeing is unlikely to face a big hit. Here’s why:

China’s Orders Were Already Low: Since 2018, Chinese customers have ordered only 28 Boeing aircraft, as per company data. This is just 2% of Boeing’s huge order backlog, which is already sold out until 2030 with other global customers.

Deliveries Were Paused Earlier: China had stopped taking Boeing deliveries during Trump’s last term. So, this cancellation doesn’t change much. Only about 25 Boeing 737-8 MAX planes, made before 2023, are left undelivered to China.

Boeing Has Other Buyers: Boeing operates in a growing global market. Other regions, like Europe, Asia, and the Middle East, have strong demand for new planes and replacements. Boeing can sell its planes elsewhere without relying on China.

Goldman Sachs analyst Noah Poponak told Bloomberg, “The impact on Boeing is very small. China had already stopped ordering and taking deliveries, so there’s no real reduction.” This means Boeing is well-prepared to handle this move by China.

The US trade deficit happens when the country imports more than it exports. China’s decision to stop buying Boeing planes might seem like it could worsen this gap. However, experts say the impact will be minor. Boeing’s sales to China are a small part of its business, and the company has plenty of other customers worldwide. Plus, China’s slowing economy would have reduced its demand for planes anyway, so the US trade balance won’t see a big change.

A top Chinese official, Xia Baolong, director of China’s Hong Kong and Macau Affairs Office, called Americans “peasants” and said Trump’s tariffs will backfire. He claimed the US is trying to harm China’s survival and predicted that Americans will “wail” under the effects of these trade policies. “Let those peasants in the United States wail in front of the 5,000 years of Chinese civilization,” he said, as reported by Zero Hedge. These comments show the growing tension between the two countries.

For now, Boeing seems safe from China’s decision. The company has a strong global market and enough orders to keep it busy for years. The US-China trade war is heating up, and both sides are taking bold steps. While China’s move to cancel Boeing orders grabs headlines, it may not shake Boeing or the US economy as much as it seems.