Trump Says China Scraps Major Boeing Deal Amid Escalating Trade War
U.S. President Donald Trump announced Tuesday that China has withdrawn from a major Boeing deal and will not take delivery of aircraft previously committed to.
“They just reneged on the big Boeing deal, saying that they will ‘not take possession’ of fully committed to aircraft,” Trump said on his Truth Social platform. He added that American farmers are on the “front line” of the ongoing “trade war” and accused China of being “brutal” to U.S. agriculture during his first term.
Boeing shares dropped 2.36% following media reports indicating that China instructed domestic airline companies not to purchase Boeing jets.
China was the first to respond to U.S. tariff hikes with matching increases. As the tariff standoff intensified, the U.S. raised duties on Chinese goods to 145%, while China imposed 125% tariffs on American products.
While the U.S. government delayed implementing reciprocal tariffs on other nations for 90 days, the tariffs targeting China were enacted immediately.
Trump later announced that certain tech products—including smartphones, laptops, hard drives, computer processors, and chips—would be exempt from the new tariffs.
In a further escalation, the White House declared late Tuesday that China now faces tariffs of up to 245% in response to its retaliatory measures.
