Boeing Stock Is Sliding Tuesday: What's Going On?

Boeing Co BA shares are trading lower Tuesday following reports that China has halted Boeing jet deliveries.

What To Know: According to a Bloomberg report, China has ordered its airline companies to stop taking deliveries of Boeing jets as the U.S.-China trade war intensifies.

People familiar with the matter reportedly said China also asked its airlines to refrain from purchasing any aircraft-related parts and equipment from U.S.-based companies.

The move comes in response to U.S. President Donald Trump’s reciprocal tariffs. While Trump has announced a temporary pause on tariffs for a majority of countries, he has continued to ramp up pressure on China.

The latest move from China also comes after China slapped 125% retaliatory tariffs on American goods over the weekend. Those tariffs alone would have more than doubled the cost of Boeing jets and other aircraft parts.

See Also: Bessent Says Tariffs On China Are ‘Far From A Joke,’ Dismisses Treasury Dumping Fears

Bloomberg further reported that the Chinese government is mulling ways to provide assistance to its airlines that have current jet leases with Boeing and are now battling higher costs.

Boeing reportedly has about 10 737 Max aircraft ready for deliveries to Chinese airlines. The report indicates that some of the jets are stationed by Boeing’s Seattle factory, while others are sitting at a finishing location in Zhoushan, China.

BA Price Action: Boeing shares fell as much as 2.5% on Tuesday, before finding some support. The stock was down 1.55% at $156.81 at the time of publication Tuesday, according to Benzinga Pro.

Photo: courtesy of Boeing.