China Sends Boeing Planes Back Amid Tariff War

2 months ago Editor

China has halted Boeing aircraft deliveries, returning planes amid a worsening tariff battle with the U.S., forcing Boeing to reassign jets to other customers.

In a fresh blow to U.S. aerospace giant Boeing, China has returned two aircraft and is set to return a third due to escalating trade tensions triggered by new tariffs. Boeing leadership confirmed that Chinese customers are halting deliveries, affecting around 50 planes originally scheduled for handover this year.

The United States recently imposed 145% tariffs on Chinese imports, prompting China to retaliate with a 125% levy on U.S. goods. Boeing’s executives emphasized the severe impact this environment is having on deliveries, with the company now seeking alternative buyers for 41 completed jets. Another nine planes, not yet in production, may also be reassigned if necessary.

As America’s largest exporter, Boeing relies heavily on international sales, with about 70% of its commercial aircraft sold outside the U.S. Boeing’s management stated they will not continue producing aircraft for customers unwilling to take delivery.

Despite the challenges, Boeing remains engaged in continuous dialogue with U.S. officials, including direct communication with the President, in hopes of resolving the trade conflict. Treasury officials have expressed optimism for a potential breakthrough, citing upcoming high-level discussions as a critical opportunity.

Meanwhile, Boeing faces added pressure as tariffs affect suppliers in Japan and Italy, where a universal 10% tariff has been introduced. Despite the disruptions, Boeing reported narrower first-quarter losses and plans to ramp up production of its 737 MAX jets to 38 units per month by 2025, signaling cautious optimism for the future.