China's Airlines 'Ordered' to Stop Boeing Deliveries in Tit-for-Tat Move

China has reportedly ordered its airlines not to take any further deliveries of Boeing jets, the latest move in its tit-for-tat trade war with the U.S.

- Lauren Almeida

The Chinese government has asked carriers to stop purchases of aircraft-related equipment and parts from American companies, according to a Bloomberg News article, which cited people familiar with the matter.

The order was reported to have been made after the country raised its retaliatory tariffs on U.S. goods to 125% on Friday in response to Donald Trump's levies on Chinese imports totaling 145%. Beijing was also said to be considering ways to support airlines that lease Boeing jets, which are facing higher costs.

About 10 Boeing 737 Max jets are being prepared to join Chinese airlines, and if delivery paperwork and payment on some of them were completed before Chinese "reciprocal" tariffs came into effect, the planes may be allowed to enter the country, sources told Bloomberg.

The restriction marks a serious blow for Boeing and other manufacturers trying to navigate the escalating trade war between the world's two biggest economies.