Aircraft returned as Beijing retaliates over Trump’s 145% tariffs; Boeing seeks new buyers
Boeing is scrambling to find new buyers for as many as 50 aircraft originally destined for China, after Beijing halted deliveries in response to the United States’ escalating tariff regime.
Chief executive Kelly Ortberg confirmed this week that two planes had already been sent back from China, with a third expected to follow. He said Chinese customers had indicated they would not take delivery of any of the 50 aircraft due this year, citing the current “tariff environment.”
Boeing is the United States’ largest goods exporter, and around 70% of its commercial aircraft are sold internationally. China had been a key market until recently, but now accounts for only 10% of Boeing’s US$500bn order backlog—down from around 25% a decade ago. The decline follows not just the trade war, but also a long-running fallout from the 737 Max safety crisis, which saw Chinese regulators ground the aircraft until January 2023, well after most other jurisdictions had cleared it to fly.
Speaking to CNBC and investors, Ortberg said the company is already re-marketing 41 completed aircraft and plans to reallocate production of another nine not yet on the line. “We’re not going to continue to build aircraft for customers who will not take them,” he said. Boeing is reportedly in discussions with other international carriers, some of whom have expressed strong interest in near-term deliveries. Repainting aircraft in alternative liveries is already under consideration.
Despite the loss of China-bound orders, Boeing shares rose 5.7% on Wednesday after the company posted a smaller-than-expected first-quarter loss. Revenue rose to US$19.5bn, and Boeing reiterated plans to increase production of its 737 Max jets to 38 per month in 2025. Ortberg said the company’s financial recovery was “in full swing,” citing signs of early effectiveness.
CFO Brian West noted that Boeing’s broader exposure to tariffs could still pose risks. Universal 10% duties on exports from key supplier countries like Japan and Italy are now in effect, and retaliatory measures by other nations could apply further pressure to Boeing’s cash flow. “Free trade policy remains very important to us,” West said, adding that about 70% of Boeing’s planned 2025 deliveries are for international customers.
The aircraft dispute underscores Boeing’s strategic vulnerability in an intensifying trade conflict. The White House earlier this month imposed 145% tariffs on Chinese imports, prompting Beijing to retaliate with 125% levies on US goods—including passenger jets—and restrictions on rare earth exports. Boeing has been one of the most visible casualties.
Ortberg said the company remains in constant communication with top officials in Washington, including President Trump. “There is not a day that goes by that we’re not engaged with either cabinet secretaries or POTUS himself,” he said, expressing hope that some form of negotiation could follow.
Trump has signalled he is open to reducing the 145% tariffs—“they will come down substantially, but it won’t be zero,” he said—but China’s position remains firm. Chinese officials insist that all unilateral tariffs must be lifted before any trade talks can take place.
For Boeing, the near-term focus is on protecting delivery targets and re-routing inventory. But in the longer term, the company faces the prospect of being shut out of one of the world’s fastest-growing aviation markets—just as its European rival Airbus expands operations in France, China, and the US.
