China has lifted its month-long ban on airlines accepting Boeing aircraft deliveries, following a breakthrough in US-China trade talks.
According to reports, Beijing has informed domestic carriers that they can resume deliveries of US-made aircraft. Airlines, on the other hand, will be free to schedule deliveries on their own terms.
The decision comes a day after the two countries announced a 90-day tariff pause and agreed to reduce them by 115 percentage points. The move comes after months of escalation between the two economic powerhouses, who have been locked in a retaliatory tariff war.
China had previously imposed 125 percent tariffs on American-made goods, prompting the US to respond with 145 percent tariffs on Chinese goods.
China's decision to lift the ban on Boeing deliveries will provide an immediate boost to the US aircraft manufacturer, but the relief may be short-lived if the two countries fail to resolve their tariff disputes during the 90-day pause.
The report also stated that, while Beijing has given airlines the freedom to arrange deliveries, it is unclear when domestic carriers will be able to take possession of the aircraft they require.
Boeing caught in the US-China trade war
Boeing was caught in the crossfire of the trade war after Beijing directed domestic airlines to halt deliveries of its aircraft. Some jets were even flown back to the United States after Chinese companies refused to take them. The planemaker stated that it would seek other buyers, including India's Air India, which was reportedly in talks to purchase ten of the rejected aircraft.
On April 2, US President Donald Trump announced reciprocal tariffs against over 100 countries, including China, India, and Japan. China faced 34% 'discounted' tariffs, in addition to the 20% previously imposed. While several countries attempted to negotiate with the United States, China responded by imposing significant tariffs on American goods.
US-China trade truce
A trade truce was announced on Monday following a meeting of officials from both countries in Geneva. The two sides agreed to pause the tariff war for 90 days and reduce tariffs. The United States reduced tariffs on Chinese goods to 30% from 145%, while China reduced tariffs on US goods to 10% from 125%.
We use cookies to ensure you get the best experience on our website. Read more...