China has reportedly instructed its airlines to suspend any purchases of jets from the American aerospace company Boeing. This move appears to be a direct response to President Trump’s implementation of steep tariffs—reaching up to 145%—on Chinese imports.
According to Bloomberg News, which cited individuals with knowledge of the matter, the Chinese government has also advised domestic airlines to refrain from acquiring any aviation components or services from U.S.-based suppliers.
This directive follows Beijing’s own decision over the weekend to slap a 125% tariff on American goods, a measure that would effectively double the price of aircraft and parts produced in the United States, Bloomberg reported.
The announcement led to a 3% drop in Boeing’s shares during early trading on Tuesday. The development is a significant setback for the company, which has long seen China as a critical market for future growth, even as European competitor Airbus holds the majority share there.
In light of the situation, Bloomberg reports that Chinese officials are now evaluating options to support local airlines that operate Boeing aircraft and are now facing increased costs for upkeep and servicing.
Tensions between the two economic powerhouses have also spilled into other sectors. Earlier this month, China halted exports of rare earth elements and magnets that are essential for manufacturing a broad range of high-tech American products, from smartphones to military aircraft.
As of April 3, China stopped outbound shipments of seven heavy rare earth elements and magnets that are almost exclusively processed within the country.
These materials are largely sourced and refined in China, which accounts for about 90% of the global supply. Their importance spans multiple critical industries, including electric vehicles, aviation, technology, and national defense.
“These materials are in everything,” explained Drew Horn, who served as the Trump administration’s lead official on strategic minerals and supply chains. Speaking to the New York Post on Monday, Horn added, “China has essentially created an all-powerful monopoly with them.”
While the export restrictions are officially global, the United States is especially reliant on access to elements such as dysprosium and yttrium, which are integral to advanced industrial production.
Horn emphasized that China possesses the strategic power “to basically cut us off and cut the world off, which essentially cuts us off through all sorts of different means.”
He cautioned that protective measures are needed to shield U.S. businesses and consumers from the ripple effects of Chinese economic retaliation. Horn pointed to Boeing as a case in point, warning that any countermeasures from Beijing “would basically be to go through the entire Boeing supply chain, throughout their entire ecosystem, and basically cut them off.”

{Matzav.com}