The trade war between the United States and China is getting worse. On Tuesday, China told its airlines not to buy any new planes from American aircraft company Boeing. This decision came after China imposed a new 125% tariff on all US products. It was done in response to Donald Trump's 145% tax on Chinese goods.

China has also ordered an “immediate stoppage” of any purchases related to aircraft machinery and equipment from US companies, according to Bloomberg. This means that Chinese airlines can no longer buy parts or planes from Boeing until further notice.

Boeing caught in the crossfire

Boeing, one of the biggest plane makers in the world, has been hit hard by this trade fight. Bloomberg reported that Chinese airlines that currently rent Boeing planes will now get support from the government to help cover the extra costs. That’s because Boeing planes and parts will now cost almost double due to the high tariffs.

China is an important customer for Boeing. In 2018, China made up nearly 25% of Boeing's total aircraft sales. According to Bloomberg, 20% of the global demand for aircraft over the next 20 years is expected to come from China. This growing trade war is now directly affecting major businesses in both countries.

 

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