China has returned two US-made Boeing planes and canceled more deliveries in a sharp response to President Trump’s increased tariffs, Boeing CEO Kelly Ortberg confirmed. One more plane is expected to be sent back, and Chinese customers have indicated they will not accept the 50 aircraft scheduled for delivery this year.
The move comes after the US imposed 145% tariffs on Chinese imports, with China retaliating with 125% tariffs on American goods. Boeing, America’s largest exporter—relying on international markets for about 70% of its commercial sales—is now looking to re-market 41 completed planes and may reassign others in production.
Ortberg stated, “We’re not going to continue building aircraft for customers who won’t take them,” and said Boeing remains in daily communication with the White House, pushing for a resolution.
Despite the setback, Treasury Secretary Scott Bessent expressed optimism at an IMF conference, calling upcoming US-China trade talks a potential “incredible opportunity” if Beijing shows commitment to reform.
Meanwhile, Boeing’s broader supply chain is also impacted, with 10% universal tariffs affecting parts from countries like Japan and Italy. The company is working with suppliers to minimize disruption.
Boeing posted reduced losses in Q1 2025 after overcoming a difficult 2024 marked by production slumps and a major factory worker strike. It now plans to ramp up 737 MAX production to 38 per month next year.
