U.S. President Donald Trump’s tariffs and China’s response have an impact on the economy and business around the world, including one of China’s big three state-owned carriers, China Southern Airlines, as the airline now pauses the sale of its used Boeing fleet.
The trade war has been escalating as the U.S. increased its tariff rate on China’s goods, which now reached 145%, causing China to raise its tariff rate on the U.S.’ as one of response measures, which is currently at the rate of 125%.
In addition to raising the tariff, China also ordered its airlines to stop taking deliveries of Boeing jets or buying U.S.-made aircraft parts, affecting several airline’s business, including the China Southern Airlines’.
The airline now suspended its sale of 10 used Boeing 787-8 Dreamliner aircraft. Nikkei cited that this halt is due to airline’s concerns that the trade war may downgrade its ability to receive more Boeing aircraft.
Beside the sale suspension, the plan to replace Boeing 787-8 Dreamliner with new widebody aircraft from the U.S. is now up in the air.
