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China’s airlines may revise Boeing orders as tariffs come in to force
April 10th 2025
China’s retaliatory tariffs in response to U.S. president Donald Trump’s trade policies will significantly increase the cost of Boeing aircraft for Chinese airlines, potentially requiring them to adjust their fleet procurement strategies, Yicai Global reports. Read More » “A 34% tariff hike is substantial and will impose massive new costs on Chinese carriers planning to acquire U.S. manufactured aircraft,” the Yicai news platform said earlier this week. Industry analysts believe domestic airlines are likely to seek alternative suppliers or delay purchases to mitigate the impact of the ever increasing U.S. tariffs. In the short-term, carriers may prioritize leasing jets over direct purchases and longer term could shift to ordering Airbus or COMAC aircraft, Yicai wrote. At a recent supplier conference, COMAC representatives said the Mainland OEM is preparing to launch a second C919 production line to increase annual output of the type to 30 by next year. In addition, the company revealed it aims to roll out 200 of the narrow-bodies in 2029. The likely increase in the cost of Boeing’s aircraft gives airlines leverage to delay purchases, Yicai said. “China’s aviation market still faces excess capacity. Our strategy focuses on expanding narrow-body fleets while controlling wide-body growth,” an executive from one of the big three airlines said to Yicai, noting this approach allows carriers more flexibility to adapt operations amid tariff tensions.
