China Reverses Ban On Boeing Jet Deliveries After Trade Breakthrough With US

China lifted a month-long ban on Boeing jet deliveries for all domestic carriers just one day after a breakthrough in U.S.-China trade talks, Bloomberg reports, citing people familiar with the matter.

Chinese officials instructed domestic carriers and government agencies at the start of the week that deliveries of US-made jets were allowed to resume. This decision coincides with a 90-day tariff truce, during which the U.S. slashed tariffs on Chinese imports from 145% to 30%, and China cut import duties on US goods from 125% to 10%. 

In April, the tit-for-tat trade war between the Trump administration and China led to Beijing's non-tariff countermeasures, including Juneyao Airlines that delayed the delivery of a 787-9 Dreamliner.  

china reverses ban on boeing jet deliveries after trade breakthrough with us

Last week, ahead of U.S. Treasury Secretary Scott Bessent's weekend meeting with Chinese counterparts for the first round of trade talks in Switzerland, a Bloomberg report specified that China Airlines placed an order for more than a dozen 777 planes. At the time, we asked if this was a  "goodwill gesture" by Beijing ahead of the trade talks. 

china reverses ban on boeing jet deliveries after trade breakthrough with us

Trade talks have since de-escalated the tariff war. 

china reverses ban on boeing jet deliveries after trade breakthrough with us

Still, Goldman expects the overall effective tariff rate in the U.S. to be around 15% - a generational high dating back to the 1930s. 

china reverses ban on boeing jet deliveries after trade breakthrough with us

China's move to resume Boeing deliveries may provide a short-term boost for the sideways pattern shares have traded in for five years. Premarket activity in New York shows shares are up nearly 1%, trading around the $200 handle. Year-to-date, shares are up 12% as of Monday's close. 

china reverses ban on boeing jet deliveries after trade breakthrough with us

Great news for Boeing.

Authored by Tyler Durden via ZeroHedge May 13th 2025