In a sharp escalation of the ongoing U.S.-China trade conflict, China has returned multiple Boeing aircraft to the United States, citing retaliatory measures against American-imposed tariffs. Boeing CEO Kelly Ortberg revealed that two planes have already been sent back, and another is expected to follow, underscoring how deeply trade hostilities are impacting global industries.
According to Ortberg, the fallout doesn’t stop there. A staggering 50 aircraft that were scheduled for delivery to Chinese clients this year are now facing uncertainty. “Chinese buyers have indicated they won’t be accepting delivery under the current tariff conditions,” Ortberg told CNBC.
The trade standoff intensified after the U.S. slapped a hefty 145% tariff on Chinese imports. In response, Beijing imposed a 125% tax on American goods, including commercial airplanes… a direct hit to Boeing, the country’s largest exporter. Roughly 70% of Boeing’s commercial aircraft are sold outside the U.S., with China being one of its key markets.
Despite President Donald Trump expressing optimism during a recent Oval Office address… saying tariffs would “come down substantially” but not disappear entirely… aircraft deliveries remain in limbo. “The reality is, China has halted aircraft acceptance because of the current trade climate,” Ortberg emphasized.
Boeing is now exploring alternative solutions, including remarketing 41 already-assembled jets to other global airlines amid surging demand. “We still have nine planes that aren’t in our production system yet. We’re trying to understand whether those will be taken or need to be reassigned,” Ortberg said. “We simply cannot keep building planes for customers who refuse to take them.”
The aircraft giant’s pivot signals broader economic implications and raises questions about the future of U.S.-China trade relations… especially in high-stakes industries like aviation.
