As the trade war with the US intensifies, China has halted deliveries from Boeing. US President Donald Trump has imposed tariffs as high as 145% on Chinese goods entering the US in his bid to balance global trade.
In response, Chinese officials have instructed airlines to cease accepting deliveries from Boeing and to stop purchasing aircraft-related equipment and parts from American companies.
Despite announcing a 90-day pause on many of his tariffs last week, citing that bond market investors “were getting a little queasy.” Trump’s hefty tariffs on China remain in place, as his administration has also initiated investigations into imports of computer chips, chip-making equipment, and pharmaceuticals.
Late on Monday, the Department of Commerce posted notices about these probes on the Federal Register, inviting public comment within three weeks. These investigations had not been formally announced earlier.
The Commerce Department is investigating how imports of computer chips, the equipment used to manufacture them, and products containing them – which include everyday items such as cars, refrigerators, smartphones, and other goods – impact national security. Section 232 of the Trade Expansion Act of 1962 allows the president to impose tariffs for national security reasons.
Bloomberg have reported that the Chinese government is considering support measures for airlines leasing Boeing aircraft, as they grapple with rising costs.
This comes as Trump’s barrage of tariffs has unsettled global markets and disrupted diplomatic relations with both allies and rivals, with Irish leaders even condemning his move – with prices to skyrocker around the world.
Though the unpredictable U.S. leader unexpectedly paused additional tariff hikes last week, he offered no immediate relief to Beijing.
On Friday, U.S. officials announced exemptions from the newest round of tariffs on China and other nations, covering a variety of high-end tech products, including smartphones, semiconductors, and computers.
