China has ordered its airlines to stop buying parts and aircraft from American Boeing

China has ordered its airlines to stop buying more American Boeing planes in response to a 145% tariff imposed by President Donald Trump, Bloomberg reported, citing anonymous sources.

Beijing has also ordered Chinese airlines to stop all purchases of aircraft equipment and parts from American companies. China reportedly sees this as a trade war and is ready to respond.

The order comes after China imposed 125% tariffs on U.S. goods, the sources said, over the weekend. The tariffs effectively double the cost of U.S.-made planes and parts. Boeing shares fell 4.6% on the news.

By the way, about 10 Boeing 737 Max aircraft are currently planned to be added to the fleets of Chinese airlines, including two each for China Southern Airlines Co, Air China Ltd and Xiamen Airlines Co, according to Aviation Flights Group. The delivery and payment documents for some of these aircraft may have been signed even before China announced the corresponding tariffs.

China is expected to account for 20% of global aircraft demand over the next 20 years, and accounted for nearly a quarter of Boeing's production in 2018. China became the first country to ground the Boeing 737 Max in 2019 after two fatal crashes.

Trade disputes with the Biden administration and the first Trump administration have helped shift Chinese orders to European company Airbus. While Airbus is a major supplier and Chinese carriers also use the Comac C919, airlines still have hundreds of Boeing planes in need of maintenance, repair and replacement.