Boeing has confirmed that Chinese customers are refusing delivery of new aircraft due to tariffs, significantly impacting the company’s operations.
CEO Kelly Ortberg indicated that China remains the only country facing such delivery issues, prompting Boeing to redirect new jet supplies to other customers in need.
A total of three 737 MAX 8 jets have returned to Boeing’s US production hub, following a significant shift in trade policies initiated by President Donald Trump.
Boeing’s CFO Brian West mentioned China accounts for approximately 10% of the company’s commercial plane backlog, with the potential for re-marketing planes already constructed.
Analysts have noted that confusion surrounding tariffs may affect aircraft deliveries, causing some airlines to defer their orders rather than incur additional costs.
Boeing has recently ferried two B737-8s, N230BE and N242BE, from Zhoushan to the United States amid the ongoing trade conflict initiated by President Trump.
The former aircraft routed through Guam International, Honolulu, and landed in Seattle Boeing Field on April 18 and 19, while the latter moved to Guam on April 21.
Compliance with new regulations prompted Chinese airlines to halt new orders and deliveries for Boeing aircraft due to increased tariffs on American imports.
Juneyao Air deferred the delivery of a B787-9 due to implications from the tariffs, revealing challenges in the current trade landscape.
Boeing has 137 undelivered orders to numerous Chinese carriers, indicating ongoing supply chain issues within the aviation sector.
CEO Kelly Ortberg shared: “Due to the tariffs, many of our customers in China have indicated that they will not take delivery. We’re not going to continue to build aircraft for customers who will not take them. For the nine aircraft not yet in the production system, we’re engaged with our customers to understand their intentions for taking delivery. Customers are calling, asking for additional airplanes.”
