Washington: US President Donald Trump on Tuesday announced that China has withdrawn and will not take delivery of airplanes from a significant Boeing deal. "They just reneged on the big Boeing deal, saying that they will 'not take possession' of fully committed to aircraft," Trump stated on Truth Social.

According to Anadolu Agency, Trump also mentioned that US farmers are on the "front line" of the ongoing "trade war," accusing China of being "brutal" to American farmers during his first term. The announcement had immediate financial repercussions, as Boeing shares fell by 2.36% following media reports that China instructed its airline companies not to purchase Boeing jets.

The trade tensions between the US and China have been escalating, with China being the first to respond to US tariff increases by imposing similar rates. Consequently, the US raised its tariffs on Chinese goods to 145%, while China increased its tariffs on US products to 125%. Despite the Washington administration postponing reciprocal tariffs on other countries for 90 days, the tariffs against China were enforced without delay.

In a bid to alleviate some economic pressures, Trump later declared that certain technology products, including smartphones, laptops, hard disks, computer processors, and chips, would be exempt from the additional taxes. Nevertheless, the White House announced late Tuesday that China could face tariffs of up to 245% due to its retaliatory actions.