Boeing Slumps In Premarket As China Reportedly Moves To Halt Jet Deliveries
Boeing's shares slid sharply in premarket trading early on Tuesday, after Bloomberg reported that the Chinese government had ordered the country's airlines to stop taking deliveries of new aircraft from the American plane maker amid an escalating trade war between Beijing and Washington.
A Boeing 737 Max is displayed during the International Paris Air Show at the ParisLe Bourget ... More Airport.
According to Bloomberg, the move to block deliveries of new Boeing jets to the country's air carriers is in retaliation against President Donald Trump's decision to impose a tariff rate of 145% on nearly all Chinese-made goods.
Chinese airline companies have also been ordered to stop buying aircraft parts and other aviation-related equipment from the U.S. plane maker, the report added.
The decision was reportedly made after China announced a tit-for-tat response last week by raising tariffs on U.S. imports to 125%, which would have likely made such aircraft and equipment purchases prohibitively expensive.
The Chinese government has not made an official announcement on the matter yet, but the report said that Beijing is considering measures to support airline operators who use Boeing's planes.
Forbes has reached out to Boeing for comment.
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Boeing's shares were hit during premarket trading early on Tuesday, after the Bloomberg report was published. The plane maker's stock fell as much as 4.5%, before recovering slightly to $153.94—a drop of 3.35% from Monday's closing price.
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