Boeing has confirmed that China has returned two of its planes and will soon send back a third, in a direct response to the latest volley of tariffs between the two superpowers. CEO Kelly Ortberg revealed that Chinese customers are refusing delivery of additional aircraft, despite Boeing having 50 planes scheduled for China this year.
In an interview with CNBC, Ortberg stated: “They have in fact stopped taking delivery of aircraft because of tariff environment.”
The move follows a dramatic escalation of tariffs: the U.S. slapped a 145% tax on Chinese imports, while China retaliated with a 125% tariff on American goods.
A stark image from Reuters captured the second Boeing 737 MAX 8 bound for return mid-flight over Seattle—s, symbolic of the mounting pressure on America’s largest exporter. Approximately 70% of Boeing’s commercial aircraft sales come from outside the U.S., making international markets critical to its bottom line.
Despite President Trump’s comments from the Oval Office suggesting optimism—“the level of tariffs… will come down substantially, but it won’t be zero”—Boeing is already taking corrective steps. Ortberg said the company is actively trying to re-market 41 already-built planes to other airlines due to strong demand, while reassessing future orders: “We’re not going to continue to build aircraft for customers who will not take them.”
Nine additional planes, not yet in the production cycle, are also under review as Boeing seeks clarity from Chinese buyers.
In a call with investors, Ortberg highlighted just how involved Boeing is with federal officials amid the trade crisis: “There is not a day that goes by that we’re not engaged with either cabinet secretaries or POTUS himself regarding the trade war.”
He expressed cautious optimism, hoping negotiations would soon replace standoffs.
That sentiment was echoed by U.S. Treasury Secretary Scott Bessent during remarks at the International Monetary Fund conference, where he called an upcoming U.S.-China meeting an “incredible opportunity” to reach a significant trade agreement—“if China was serious” about rebalancing its export-heavy economy.
The pain of tariffs isn’t limited to Boeing’s U.S. operations. Suppliers in Japan and Italy are now facing 10% universal tariffs, potentially destabilizing key parts of Boeing’s global supply chain.
CFO Brian West emphasized: “Free trade policy is very important to us,” noting that Boeing remains committed to working with partners to maintain production flow.
Amid all this, Boeing has managed to report narrower first-quarter losses, buoyed by increased aircraft deliveries following a turbulent 2024 marked by internal crises and a large-scale strike by 30,000 American factory workers.
