US President Donald Trump on Tuesday announced that China has withdrawn and will not take delivery of airplanes from a major Boeing deal.
“They just reneged on the big Boeing deal, saying that they will ‘not take possession’ of fully committed to aircraft,” Trump said on Truth Social.
Trump also stated that the US farmers are on the “front line” of the “trade war” and China was “brutal” to US farmers in his first term.
Boeing shares fell 2.36% after media reports suggested China, instructed airline companies in the country not to buy Boeing jets.
China was the first country to react to the US tariff increases and responded at the same rate. As a result of the tariff showdown between the two countries, the US raised its tariffs on China to 145% and China raised its tariffs on the US to 125%.
While the Washington administration postponed the reciprocal tariffs imposed on other countries for 90 days, tariffs against China came into force.
Trump later announced that some technology products such as smartphones, laptops, hard disks, computer processors and chips would be exempted from the additional taxes.
In the latest move, White House announced late Tuesday that China now faces up to 245% tariffs due to its retaliatory actions.