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Chinese airline delays Boeing jet delivery as tariffs surge

A logo is emblazoned on a pilot’s seat in the cockpit of a Boeing Co. 787 Dreamliner. (Chris Ratcliffe/Bloomberg)
By Danny Lee and Siddharth Philip Bloomberg

China’s Juneyao Airlines Co. is delaying delivery of a Boeing Co. widebody aircraft, according to people familiar with the matter, highlighting how the escalating trade war between Washington and Beijing is driving up the price of big-ticket goods.

Juneyao was due to take delivery of the 787-9 Dreamliner, valued at about $120 million, from the U.S. planemaker in about three weeks but will now hold off due to President Donald Trump’s tariffs on China, said the people, asking not to be identified discussing information that’s private.

Juneyao didn’t immediately respond to a request for comment. Boeing declined to comment.

Boeing shares fell in New York after Bloomberg News reported on the delivery delay, but gained 0.85% at closing.

The Chinese airline joins a growing list of companies on both sides of the dispute suspending the exchange of goods due to the punishing levies. Tesla Inc. has stopped taking orders in China for Model S sedans and Model X sport utility vehicles – both of which are imported from the US.

Boeing has warned that an escalating trade spat could also hurt supply chains that had been severely strained ever since the pandemic and were only now showing signs of getting back to normal.

China announced on Friday that it will raise tariffs on all U.S. goods to 125% starting April 12, after Trump imposed an equivalent charge designed to counter America’s trade deficit and punish Beijing for retaliating against U.S. import taxes. On top of a 20% levy put in place earlier this year over China’s role in fentanyl trafficking, that means the rate of U.S. tariffs on China is now 145%.

For Shanghai-based Juneyao, the postponement risks delaying its international expansion. The airline had planned to increase flights to Europe, including Brussels and Athens, from the summer. Those additional routes were reliant on deliveries of long-range Boeing aircraft.

Juneyao has a fleet of more than 100 planes, mainly Airbus SE single-aisle jets and nine Boeing 787s.