China stops taking Boeing planes amid tariff dispute with US

Boeing’s CEO, Kelly Ortberg, said that Chinese customers have stopped taking deliveries of Boeing airplanes. He said that the reason for this move is the current tariff war between China and the United States. Ortberg said this during an interview on CNBC.

“If the situation continues,” he said, “we’ll have to offer these planes to other airlines.”

Boeing was supposed to deliver around 50 new planes to China in 2025. Amid the trade war, that plan won’t materialise.

Ortberg added, “I’m not going to let this derail the recovery of our company, so we’ll give the customers an opportunity if they want to take the airplanes. That’s what we prefer to do. But if not, we’re gonna remarket those airplanes.”

The US and China have not yet resumed formal tariff negotiations. While some officials, including President Trump, have been more vocal about the trade agreement, Treasury Secretary Scott Bessent reported that negotiations with Beijing have yet to start.

BOEING FACES CHALLENGES BUT SHOWS PROGRESS

Despite the trade tensions, Boeing registered a few silver linings in its own financial performance. Boeing reported a lower loss of $123 million for the first quarter of the year, down from a $343 million loss in the same quarter of last year. Revenue also grew 18%, reaching $19.5 billion.

Boeing also reaffirmed its intention to ramp up production of commercial aircraft. The 737 MAX will be produced at a rate of 38 aircraft per month in 2025, and the 787 Dreamliner will increase from five to seven aircraft per month. The first delivery of the new 777-9 will be in 2026.

The firm also reported a cash burn of $2.3 billion, which was less than projected. Analysts had forecast a cash flow loss of $3.7 billion.

In another big move, Boeing said it was selling portions of its digital aviation solutions business to a firm named Thoma Bravo for $10.55 billion. Included in the sale is Jeppesen, a navigation firm that has been in business for 81 years. Ortberg also said Boeing is looking to sell some other smaller companies.

ALSO READ: Get it done: Trump slams Zelenskyy for refusing to cede Crimea