Trade War Escalates: China Retaliates Against US Tariffs, Orders Airlines to Halt Boeing Purchases

In a significant escalation of the ongoing trade war, China has reportedly instructed its airlines to cease accepting further deliveries of Boeing jets and to halt purchases of other aircraft-related equipment and parts from U.S. companies. This development, reported by Bloomberg News on Tuesday citing sources familiar with the matter, comes in direct response to the United States’ decision to impose a substantial 145% tariff on Chinese goods.
The move by Beijing follows the announcement by U.S. President Donald Trump of a new 125% levy on Chinese goods, which the White House clarified is in addition to an existing 20% tariff, bringing the total to 145%. The initial 20% tariff was imposed by the U.S. in response to what Trump described as Beijing’s involvement in the production and supply of fentanyl into the U.S.
According to the Bloomberg report, the Chinese government is also exploring measures to assist airlines leasing Boeing aircraft who are facing increased costs due to the trade dispute.
Earlier, Chinese officials, in a statement published on their customs department website, accused the United States of violating international trade norms. They described the U.S.’s imposition of “abnormally high tariffs” as a serious breach of international economic and trade rules, basic economic laws, and common sense, labeling it as “completely unilateral bullying and coercion.”
In response, China announced adjustments to its tariff measures on imported goods originating from the United States, raising them from 84% to 125%, effective April 12, 2025. The Chinese statement indicated that at the current tariff level, there is “no market acceptance for US goods exported to China,” and that if the U.S. continues to impose tariffs, China would “ignore it.”
This latest development marks a sharp turn after a brief period where President Trump announced a pause on all “reciprocal” tariffs, except those on China. In a previous escalation, Trump had raised reciprocal tariffs against China to 125%, up from 104%.
The trade tensions between the two economic giants have been escalating, with China previously vowing to “fight to the end” against what it perceives as aggressive U.S. trade practices, leading to retaliatory tariff hikes on U.S. goods.