China sends Boeing planes back to US over tariffs

China has returned planes it ordered from the US. This is part of its retaliation against Trump tariffs. Boeing's CEO, Kelly Ortberg, confirmed that two planes have been sent back. Another plane will follow soon due to rising trade tensions.

Boeing had 50 more planes scheduled for delivery to China this year. However, customers in China indicated they would not accept them. The US imposed a 145% tariff on imports from China. In response, China placed a 125% tax on US products.

On Tuesday, Trump expressed optimism about improving trade relations with China. He mentioned that tariffs would "come down substantially," but not to zero. Ortberg stated that China has stopped taking aircraft deliveries because of the tariff situation.

Boeing is America's largest exporter, with 70% of sales outside the US. Ortberg said Boeing is looking at options to re-market 41 built planes to other customers. There is high demand from other airlines for these aircraft.

He noted there are nine planes not yet in production and wants to understand customer intentions. If necessary, those planes can be assigned to other buyers. Ortberg emphasized that Boeing will not continue building aircraft for customers who won't take them.

Boeing engages daily with Trump's team regarding the trade war with China. Ortberg mentioned they are in constant contact with cabinet secretaries and President Trump himself. He remains hopeful about reaching negotiations soon.

On Wednesday, Treasury Secretary Scott Bessent spoke at an IMF conference about a potential "big deal" between the US and China on trade. He described an upcoming meeting as an "incredible opportunity" if China aims to reduce its reliance on manufacturing exports.

Ortberg also highlighted that others in Boeing's supply chain face tariffs, especially in Japan and Italy where universal tariffs of 10% are being implemented. Brian West, Boeing’s CFO, stressed the importance of free trade policy for the company.

Boeing reported smaller losses in the first quarter after increasing production and deliveries of planes. Production had dropped significantly in 2024 due to various crises and a strike by around 30,000 factory workers. The company aims to boost output of its 737 MAX jets to 38 per month by 2025.