China lifts ban on Boeing deliveries after 90-day tariff pause with US

China has announced removal of a month-long ban on airlines accepting deliveries of Boeing plane, following a breakthrough between US and China trade talks.

A Bloomberg report said that officials in Beijing have now informed the domestic carriers that deliveries of US-made aircraft can now resume. However, the airlines will have discretion to organise the delivery on their timing and terms.

This comes a day after the US and China announced a 90-day pause on tariffs and decided to slash them by 115 percentage points. The talks came after months of escalations between the two countries, which engaged in a retaliatory tariff war.

While China imposed 125 per cent tariffs on US-made goods, the US retaliated further and imposed a 145 per cent tariffs on China made goods.

China's decision to lift the ban on Boeing deliveries will serve as an immediate boost to the company, however, it could be short-lived if the two nations do not resolve the tariff war in the 90-day pause period.

The report further suggests that while China has given a nod for discretion to the airlines to arrange the deliveries, it is unclear how soon the domestic carriers will be able to get the planes they need.

Boeing caught in the US-China trade war

On April 2, US President Donald Trump announced reciprocal tariffs on more than 100 countries, including China, India, and Japan. China was slapped with 34 per cent 'discounted' tariffs in addition to the 20 per cent tariffs announced earlier. While many countries tried negotiating deals with the US, China retaliated and imposed tariffs on US-made goods.

Boeing was caught right in the middle of the spat between the US and China after Beijing ordered domestic airlines to stop accepting deliveries of Boeing's planes.

Some Boeing jets were flown back to the US after the Chinese companies refused to accept the deliveries. The company then warned to look for other potential buyers, which included Indian carrier Air India, who was in talks to accept the 10 aircraft rejected by China.

US-China trade truce

On Monday, a trade truce was announced after officials from both countries met in Geneva following months of escalation. The two sides decided to pause the tariff war for 90 days, along with slashing the tariffs. The US slashed tariffs on Chinese-made goods to 30 per cent from 145 per cent, and China cut down tariffs on US-made goods to 10 per cent from 125 per cent.