China has returned Boeing aircraft in direct retaliation for Trump tariffs, with dozens more deliveries now in jeopardy as the trade war between the two global powers intensifies.
At a Glance
- China has rejected and returned at least two Boeing aircraft with a third expected to follow
- Boeing CEO confirms China has “stopped taking delivery of aircraft because of tariff environment”
- Approximately 50 planes scheduled for delivery to China this year are now in limbo
- The rejection comes amid escalating trade tensions with 145% US tariffs on Chinese imports and 125% Chinese tariffs on American goods
- Boeing is considering remarketing 41 already-built planes to other customers due to high demand
Trade War Takes Flight
The ongoing trade dispute between the United States and China has claimed a new casualty as Boeing aircraft deliveries to China have ground to a halt. Boeing CEO Kelly Ortberg confirmed that Chinese customers have begun returning planes ordered from the American aerospace giant, with two aircraft already sent back and a third expected to follow.
The direct cause, according to Ortberg, is the punitive tariff environment created by recent trade policies. Chinese airlines had been slated to receive approximately 50 Boeing aircraft in 2024, but that entire order book is now uncertain.
The economic stakes are significant for both nations. The United States imposed tariffs as high as 145% on certain Chinese imports, to which China responded with retaliatory duties of 125% on select American products.
Boeing’s leadership has been explicit about the connection between these trade tensions and China’s decision to halt deliveries. “China has sent back planes it ordered from the US in its latest retaliation over Trump tariffs,” Ortberg stated during a recent company briefing, adding that they have “in fact stopped taking delivery of aircraft because of the tariff environment.”
✈️ Boeing CEO Threatens to Halt Jet Production for China Amid Rising Trade Tensions
In a bold escalation of U.S.-China trade friction, Boeing CEO David Calhoun has threatened to stop manufacturing aircraft destined for China, citing mounting political and commercial pressures.… pic.twitter.com/3MWMYOyoWd
— AsianFin 亞財社 (@AsianFinPress) April 24, 2025
Boeing’s Strategic Response
Facing this unexpected challenge, Boeing is already exploring alternative markets for the rejected aircraft. The company has confirmed it’s assessing options to re-market 41 already-built planes intended for Chinese customers. Additionally, nine more aircraft not yet in production could be reassigned to other buyers if the situation persists. Ortberg made it clear that Boeing will “not continue to build aircraft for customers who will not take them,” signaling a firm stance amid the diplomatic tensions.
“not going continue to build aircraft for customers who will not take them,” said Mr. Ortberg
Despite these challenges, Boeing reported reduced losses for the first quarter as manufacturing and deliveries increased following earlier production slowdowns. These previous difficulties stemmed from various crises, including a strike involving 30,000 American factory workers. Looking forward, the company aims to boost production of its 737 MAX jets to 38 units monthly by 2025, though the China situation adds complexity to these plans. Boeing’s Chief Financial Officer Brian West emphasized the importance of free trade policy and maintaining continuity with suppliers throughout this period.
China’s Position and Future Outlook
China’s commerce ministry has been direct in attributing the Boeing delivery halt to American trade policies. Official statements claim US tariffs have disrupted the international air transport market and negatively impacted global industrial and supply chains. The ministry noted that many companies are currently unable to conduct normal trade operations due to these tariffs, with both Chinese airlines and Boeing suffering significant consequences as a result.
“China has sent back planes it ordered from the US in its latest retaliation over Trump tariffs,” said Kelly Ortberg.
Despite the current impasse, there are indications that both sides may be interested in de-escalation. Former president Donald Trump has expressed optimism about improving trade relations with China, suggesting tariffs could decrease without being completely eliminated. US Treasury Secretary Scott Bessent sees potential for a significant trade agreement, particularly if China reduces its manufacturing export dependence. Meanwhile, Chinese authorities have publicly expressed willingness to support normal business cooperation and have urged American officials to create a more stable environment for bilateral trade and investment.
