China halts delivery of Boeing jets as trade war with US intensifies

China has told its airlines to halt deliveries of jets from US planemaker Boeing and to suspend their purchase of aviation equipment and parts from US companies in general, a report by financial news outlet Bloomberg said on Tuesday.

The instructions from Beijing come as the world's two biggest economies impose tit-for-tat trade levies on each other in an escalating trade war.

Bloomberg said the Chinese government was also considering helping airlines that lease Boeing jets and are now facing higher costs.

Such a move could prompt Chinese airlines to consider alternatives from Europe's Airbus and homegrown manufacturer Comac.

Beijing slams 'bullying' from Washington

China has reacted to the tariffs of up to 145% imposed by the Trump administration on Chinese imports by slapping duties of 125% on imports from the US, calling the moves by Washington unlawful acts of "bullying."

The Chinese tariffs on US imports would likely have caused the cost of bringing in aircraft and components to rise considerably.

Since US President Donald Trump took office in January, he has unleashed a barrage of tariffs on foes and allies alike.

Last week, he suspended a round of what he called "reciprocal tariffs" on most countries shortly after imposing them but exempted China from the reprieve.

World markets have been in turmoil as investors seek to come to terms with what seem to many like whimsical US trade policies with no sound economic basis.