Back-and-forth tariffs could be bad for business in a growing Asian aviation market.
An Air China Boeing 737 8 (Photo: AirlineGeeks | Katie Zera)
China has reportedly blocked its airlines from receiving any additional Boeing aircraft deliveries as its ongoing trade war with the U.S. continues to see a ramping up of back-and-forth tariffs.
A Tuesday report by Bloomberg cited anonymous sources who said the Chinese government has also asked its carriers to pause buying aviation parts from American companies.
In response to President Donald Trump’s 145% tariffs on Chinese imports, China raised retaliatory tariffs on U.S. goods from 84% to 125% on Friday.
The report stated that around 10 Boeing 737 MAX jets are ready to enter Chinese airline fleets. Sources told Bloomberg that delivery paperwork and payment on some of those jets might have already been finished before China’s tariffs took effect on Saturday – though they may still be permitted entry to China.
So far this year, Boeing has delivered 20 jets to Chinese airlines, per Cirium Fleet Analyzer data.
The Chinese aviation market could be crucial to manufacturers in the coming decades. According to a 2024 Airbus market report, the country is projected to surpass North America and Europe to become the largest market for aviation services by 2043.
China’s aviation market value is expected to triple from $23 billion in 2024 to $61 billion in 2043, Airbus’ Global Services Forecast stated. Maintenance services also account for nearly 83% of total services to market in China and are expected to grow from $19 billion in 2024 to $51 billion in 2043.
Boeing’s 2024 to 2043 market outlook report estimated that China’s total aircraft fleet will grow from 4,345 in 2023 to 9,740 in 2043 – nearly 70% of which will be narrowbody aircraft.
Receive a daily dose of the airline industry's top stories along with market insights right in your inbox.
Delta CEO Ed Bastian said Wednesday that the carrier will defer new aircraft that are impacted by tariffs. The Atlanta-based…
Taiwan’s China Airlines inked a firm order with Airbus for ten A350-1000s. The new aircraft are expected to be delivered…
Japan Airlines will introduce 17 Boeing 737 MAX 8s to its fleet in anticipation of strong domestic travel demand. It…
