WASHINGTON/BEIJING — April 24, 2025 — In the latest escalation of trade tensions between the U.S. and China, aircraft manufacturer Boeing has confirmed that China has returned two U.S.-built planes and is refusing delivery of additional orders due to the ongoing tariff standoff sparked by former President Donald Trump’s protectionist trade policies.
Boeing CEO Kelly Ortberg revealed on CNBC that one more aircraft will be returned, and Chinese customers have cancelled delivery of 50 more jets slated for this year. The move follows the U.S. government’s imposition of a 145% tariff on Chinese imports, prompting Beijing to retaliate with a 125% levy on American goods, including aviation equipment.
“They [China] have in fact stopped taking delivery of aircraft because of the tariff environment,” Ortberg confirmed.
Boeing, which is America’s largest exporter, sells roughly 70% of its commercial jets outside the U.S., with China previously being one of its largest markets.
Boeing Scrambles to Reassign Aircraft
Ortberg disclosed that Boeing is already exploring ways to re-market 41 completed planes to alternative customers due to strong demand elsewhere. Of the remaining nine aircraft still in the pipeline, Boeing is seeking clarity from Chinese clients before assigning them to other buyers.
“We’re not going to continue to build aircraft for customers who will not take them,” Ortberg said.
He added that Boeing remains in daily contact with Trump’s team, and expressed optimism that a resolution may still be possible through negotiations.
“There is not a day that goes by that we’re not engaged with either cabinet secretaries or POTUS himself regarding the trade war,” Ortberg told investors.
Hope for a Breakthrough
U.S. Treasury Secretary Scott Bessent, speaking at the IMF conference, echoed Ortberg’s cautious optimism, describing the ongoing tensions as an opportunity for a “big deal” if China shows willingness to shift away from export-driven manufacturing dependency.
Boeing’s Chief Financial Officer Brian West emphasized the importance of global trade, stating, “Free trade policy is very important to us,” and reaffirmed Boeing’s commitment to working with global suppliers, including those in Japan and Italy, which are also facing new 10% universal tariffs.
Recovery and Future Outlook
Despite the geopolitical turbulence, Boeing has reported smaller-than-expected losses for Q1 2025, as production gradually recovers following multiple crises and a major 2024 strike involving over 30,000 U.S. factory workers.
The aerospace giant is now aiming to increase production of its 737 MAX jets to 38 units per month by the end of 2025, though industry analysts warn that prolonged tariff-related uncertainty could still slow its recovery.
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