China has ordered its airlines to suspend deliveries of Boeing jets and halt purchases of U.S.-made aircraft parts, escalating the ongoing trade war with the United States, Bloomberg reported Tuesday, citing sources familiar with the matter.

The move comes as retaliation against President Donald Trump’s imposition of tariffs as high as 145% on Chinese imports since taking office in January, prompting Beijing to slap 125% duties on U.S. goods.

The trade spat, marked by tit-for-tat tariffs, has disrupted global markets and strained diplomatic ties. Beijing, denouncing Washington’s “bullying,” views further tariff hikes as futile, with its commerce ministry stating they’d render U.S. goods uncompetitive in China.

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The Boeing suspension, affecting an aviation giant already grappling with production delays, could cost it billions—China accounted for 20% of its 2024 deliveries. Beijing is reportedly exploring aid for airlines leasing Boeing jets to offset rising costs.

Trump’s tariff barrage, briefly paused last week, spared some tech goods like semiconductors but kept pressure on China. U.S. exemptions aim to shield consumers from price spikes, yet JPMorgan estimates tariffs could still raise U.S. household costs by $860 billion long-term. China, diversifying trade with nations like Vietnam, appears braced for a prolonged standoff, with Xi Jinping asserting resilience against external pressures.

Boeing and China’s foreign ministry have not commented. As both nations dig in, the trade war risks further economic fallout, with no talks in sight and global supply chains under strain, threatening industries from aviation to agriculture.

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