China has lifted its month-long ban on airlines receiving deliveries of Boeing planes after a successful trade agreement between the United States and China.
According to a Bloomberg report, China has told its airlines they can now start receiving deliveries of U.S.-made planes again. However, the airlines can decide when and how they want to arrange the deliveries.
The decision was made one day after the U.S. and China announced a 90-day break from tariffs and agreed to reduce them by 115 percentage points.
This comes after months of tension between the two countries, who have been involved in a back-and-forth tariff conflict.
China lifting the ban on Boeing plane deliveries will quickly boost the U.S. aircraft maker.
However, this relief might not last long if the two countries don’t solve their tariff issues during the 90-day break.
The report also mentioned that while China has allowed airlines to arrange their deliveries, it’s still unclear when the airlines will receive the necessary planes.
Boeing caught in the US-China trade war.
Boeing got caught in the trade war when China ordered its airlines to stop accepting Boeing planes. Some planes were flown back to the U.S. because Chinese companies refused to take them.
Boeing said it would look for other buyers, and Air India from India was reportedly in talks to buy 10 rejected planes.
On April 2, U.S. President Donald Trump announced new tariffs on more than 100 countries, including China, India, and Japan. China faced a 34% “discounted” tariff on top of the 20% tariff already in place. While many countries tried negotiating with the U.S., China responded by imposing heavy tariffs on American products.
US-China trade truce
On Monday, a trade truce was announced after officials from both countries met in Geneva. They agreed to take a 90-day break from the tariff war and lower the tariffs. The U.S. reduced its tariffs on Chinese goods from 145% to 30%, while China lowered its tariffs on U.S. goods from 125% to 10%.
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