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3471Boeing is feeling the heat again—this time not because of technical failures, but due to the trade war between the United States and China.
According to reports from Bloomberg, China has told its airlines to stop taking deliveries of Boeing jets in response to President Donald Trump’s decision to slap 145% tariffs on Chinese goods.
Kimbal Musk weighed in on the situation, saying what some might be thinking but few have said out loud.
“Boeing is now cancelled in China. The great decoupling begins. Or so it seems,” Kimbal posted on X.
But he quickly pointed out that the reality is more complicated.
“Boeing’s planes that are manufactured in America, for Americans, include about 10,000 Chinese made parts. In each plane,” he added.
A Complicated Breakup
The U.S. and China are clearly on the outs again, but completely cutting ties is easier said than done.
As Kimbal noted, China also depends on American-made avionics and engines for its own planes.
While it may be tempting for politicians to talk tough, Kimbal argued the consequences would be real.
“Boeing’s prices to Americans will jump sky high because parts to make their planes will be much more expensive,” he wrote.
“Less planes means less high tech jobs in America.”
Boeing’s stock dropped up to 2% Tuesday, a sign investors are paying attention. The company has already been dealing with billions in losses, a labor strike, and ongoing quality concerns.
Boeing has been mostly shut out of the Chinese market since 2019. While it took 122 orders in 2017 and 2018, it has only received 28 orders since, mostly for freighters or via leasing firms.
Critics Fire Back
Kimbal’s comments stirred up a wide range of reactions online.
One user replied, “How can you help bridge this divide without ignoring decades of rampant abuses by China that got us here?”
Kimbal responded, “Those rampant abuses brought low prices to Americans during that same time. I think we got a pretty good deal, especially for our low income communities.”
What’s Next?
According to Reuters, China’s move to halt Boeing deliveries is just the beginning.
The country has also asked its airlines to stop buying U.S. aircraft parts, raising maintenance costs for existing fleets. China may even provide financial support to help its carriers cope.
For Boeing, this comes at a time when the company is already trying to recover from a turbulent few years—including the 737 Max crashes, increased regulatory scrutiny, and a major midair incident last year involving a door panel.
Adding to the tension, the White House confirmed April 15 that tariffs on Chinese goods could go as high as 245%.
The move comes after China restricted exports of rare earth minerals like samarium and terbium, elements used in aerospace, semiconductors, and defense manufacturing.
“China now faces up to a 245% tariff on imports to the United States as a result of its retaliatory actions,” the White House said in a fact sheet.
President Trump also signed an executive order to investigate the national security risks of depending on foreign sources for critical minerals.
The Chinese government has pushed back, with Foreign Ministry spokesperson Lin Jian saying, “You can ask the U.S. side for the specific tax rate figures.”
Despite the growing friction, Kimbal made his position clear: “Trade is also a major driver of peace,” he wrote. “I prefer incentives for peace. Just sayin’.”
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