Boeing (BA) shares plummeted 6.04% in pre-market trading following news that China has imposed a 34% tariff on all U.S. goods, including aircraft, in a retaliatory move against U.S. trade policies. This development is expected to severely impact Boeing's competitiveness in the Chinese market, one of the world's largest for commercial aircraft.

The new tariffs make Boeing planes significantly more expensive compared to rivals such as Airbus and China's own Commercial Aircraft Corporation of China (COMAC). This comes at a particularly challenging time for Boeing, as it had only recently resumed full imports to China in mid-2024 after a freeze following the MAX 8 crashes and amid U.S.-China tensions.

The impact could be substantial, with China's top three airlines - Air China, China Eastern Airlines, and China Southern Airlines - having plans to take delivery of 179 Boeing planes between 2025-2027. These orders may now be at risk due to the increased costs resulting from the tariffs, potentially forcing Chinese carriers to reconsider their fleet expansion strategies and look to alternative suppliers.