Boeing stock fell Tuesday following reports that China will halt orders from the Dow Jones manufacturer in response to President Donald Trump's trade policy.
Beijing has told China airlines to not accept any more Boeing deliveries, and requested that carriers do not buy aircraft equipment or gear from U.S. companies, Bloomberg reported early Tuesday citing unnamed sources.
Meanwhile, Chinese authorities are considering avenues to support airlines that lease Boeing planes and are facing higher costs, according to the report.
The news comes as President Trump's tariff strategy continue to evolve. China on Friday hiked its tariffs on U.S. imports to 125%. China since early April has also halted exports of key earth minerals and magnates that are used in automobiles, robotics, drones and various other industries. Meanwhile, President Trump has imposed a 145% tariff on all Chinese goods, but announced carve-out exceptions late Friday for certain electronics, including smartphones and semiconductors.
BA shares slid 2.4% Tuesday. Boeing stock is trading just above its 10-day moving average, after rebounding above that technical line on Friday.
Boeing stock is down 12% this year.
Shares of rival Airbus rose about 1% Tuesday.
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