AsianFin -- U.S. President Donald Trump on Thursday slammed China for its refusal of aircraft deliveries from Boeing Co. amid escalating trade tensions between the world’s top two economies.

Credit：Xinhua News Agency

Trump called on Boeing to "default China," accusing the country of refusing to accept aircraft made by an American jetmaker. “Boeing should default China for not taking the beautifully finished planes that China committed to purchase,” Trump posted on his social media Truth Social on Thursday.

In the post, Trump cited the rejection as an example of China’s taking advantage of U.S. He also blamed China for failing to prevent illicit fentanyl from flowing into the United States.

“This is just a small example of what China has done to the USA, for years… And, by the way, Fentanyl continues to pour into our Country from China, through Mexico and Canada, killing hundreds of thousands of our people, and it better stop, NOW!” Trump wrote.

Trump made remarks a day after Boeing CEO Kelly Ortberg confirmed the company was hit by Chinese airlines’ returning some of deliveries, a sign of the trade war fallout.

“They have in fact stopped taking delivery of aircraft due to the tariff environment,” Ortberg told CNBC on Wednesday. He said a few 737 Max planes that were in China set to be delivered to carriers there have been flown back to the U.S.

Two Boeing planes that had previously been produced at a facility in China were returned to Boeing’s Seattle base these days after Beijing asked local carriers to seek approval before taking delivery of Boeing. Ortberg said a third jet is on the track to back U.S.  Though Boeing is set to deliver 50 more plans in China this year, their customers had implied they will not take delivery of them, per the executive.  

Ortberg suggested Boeing is working to transfer existing orders from Chinese customers to those in other markets.  He said some planes that were destined for Chinese airlines and the order that Boeing was planning to build for China later this year could go to other customers.

“There’s plenty of customers out there looking for the Max aircraft,” said Ortberg. He added that Boeing won’t wait too long and vowed not to let the issue derail the recovery of the company.  

China has ordered local airlines to halt accepting deliveries of jets made by Boeing Co. as part of its countermeasures against U.S. President Donald Trump’s tariffs, Bloomberg reported last week, citing people familiar with the matter. It was reported that China has also asked local carriers to stop purchase of airline parts and other components from U.S. companies.

The order was made after China announced its tariffs on U.S. were boosted to 125% last week, matching the reciprocal tariffs that the Trump administration has placed on Chinese imports. China’s countermeasures would have more than doubled the price of U.S.-made aircraft and parts, making the cost unaffordable, according to the report.

Trump on April 9 said he has authorized a 90-day pause and “a substantially lowered reciprocal tariff” of 10% during this period, both effective immediately.

The decision was made because more than 75 countries have reached out to the U.S. to seek a trade deal and these countries have not retaliated against the U.S., Trump posted on his social media Truth Social. In the same post, Trump said he decided to lift tariffs on China to 125% as Beijing on April 9 announced it ratcheted up tariffs on U.S. to 84% from 34%.

The Customs Tariff Commission of the State Council said on April 11 China raised the additional tariffs on products imported from the United States to 125%, effective from the following day.  

The Customs Tariff Commission of the State Council said that even if the United States imposes even higher tariffs, it would no longer make economic sense and ultimately go down as a joke in world economic history. However, should the United States persist in substantially undermining China's interests, China will take firm countermeasures and fight to the end, the commission added.