China has launched a sweeping and strategic retaliation against the US in response to long-standing Trump-era tariffs, with measures ranging from harsh new tariffs on US goods to targeted strikes against key American industries—including aviation, tech, and entertainment.

The most financially devastating move came with China’s abrupt cancellation of all pending Boeing (NYSE: BA) jet orders. According to aviation analysts, this decision affects 179 aircraft worth an estimated $29.8 billion, based on average discounted pricing: 122 737s, 29 777s, 11 Dreamliners, and 10 767 freighters. With service contracts and parts for existing fleets factored in, the total revenue hit to Boeing could soar past $40 billion.

The move is expected to benefit Airbus, Boeing’s European rival, which is already positioning itself to absorb demand left by Boeing’s exclusion from the Chinese market.

Meanwhile, China slapped new tariffs of up to 125% on selected US goods, escalating duties on items from agricultural products to industrial machinery. At the same time, Chinese regulators announced that prominent US companies—including DNA sequencing firm Illumina and apparel brand PVH—have been added to its growing “unreliable entity list.”

Google is also under fire, with Chinese authorities launching an antitrust investigation.

The retaliation doesn’t stop with goods and tech. China has tightened its grip on rare-earth mineral exports, essential for US defense technologies and high-end electronics.

Hollywood studios are also seeing fewer US films approved for screening in Chinese theaters. China has also issued travel and education advisories against the US, while reportedly revoking visas for some American nationals.

And in a symbolic move that echoes Cold War tensions, Hong Kong has announced a suspension of postal services to the US effective April 16.

In a final rebuke, China announced it would file a formal challenge at the World Trade Organization against the US tariffs, which it called “economically meaningless.”

In response, the US has meanwhile increased tariffs on China to an eye-watering 245%.

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