The tit-for-tat between the two countries continues.
In what may be another blow to Boeing, China has instructed its domestic airlines to stop accepting orders from the American aircraft manufacturer. The country also directed airlines to cease purchasing parts from other U.S. companies amid escalating tensions and tit-for-tat trade policies.
Both countries have imposed steep tariffs on each other. The U.S. has raised some levies on Chinese goods to 145%, while China has countered with a 125% duty on U.S. imports. Bloomberg reported that tariffs on U.S. imports could more than double the cost of Boeing aircraft and parts, potentially making them unaffordable for airlines. The Chinese government may also assist carriers that lease Boeing jets, as leasing costs have surged.
In the first quarter, Boeing delivered 130 jets to Chinese airlines, and another 10 737 Max aircraft are scheduled to ship soon. Some jets may still enter the country if paperwork and payment were completed before the latest trade escalation. Chinese airlines may now turn to European manufacturer Airbus or China’s own Comac to meet demand.
Ryanair is also reconsidering its upcoming Boeing deliveries in light of the new tariffs. The airline is set to receive 25 jets in August, but it doesn’t need them until next year. Ryanair CEO Michael O’Leary said, “We might delay them and hope that common sense will prevail.”
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On April 15, the White House said in a fact sheet that China could face tariffs of up to 245% on imports to the U.S. after its retaliatory measures. For other countries, tariff plans are currently on hold as new trade deals are negotiated, according to the document. Neither side has backed down, despite hints of ongoing discussions.
Tensions are spreading beyond trade. The Hong Kong postal service announced it would halt packages bound for the U.S. Mail sent by sea has already been suspended, and air mail will stop on April 27. Private companies like DHL will continue to operate between the countries but at higher costs. Paper documents will not be affected.
The move followed President Trump’s executive order to raise tariffs on goods valued at $800 or less from China and Hong Kong, which were previously exempt. A statement from Hong Kong said, “The U.S. is unreasonable, bullying, and imposing tariffs abusively. Hongkong Post will definitely not collect any so-called tariffs on behalf of the U.S. and will suspend the acceptance of postal items containing goods destined to the U.S.”
Earlier this month, China also issued advisories warning its citizens about the risks of traveling to or studying in the U.S. amid rising economic and political tensions.
Related: China Issues Advisory About Traveling and Studying in the U.S.
In addition to China, several countries—including Canada, Denmark, Germany, Ireland, France, and the Netherlands—have raised concerns about traveling to the U.S. Some cite border policies that may result in foreigners being detained or denied entry. Others have spoken out following the rollback of transgender rights. Canada, for example, warned that travelers’ phones and laptops may be subject to searches.
Related: A Running List of Countries Issuing U.S. Travel Advisories
