What happened? : China has returned Boeing planes ordered from the US in response to the escalating trade war sparked by Trump’s high tariffs on Chinese imports (China Returns). Two planes have already been sent back, with one more on the way.
Why it matters:
Boeing, America’s largest exporter, is feeling the heat as Chinese (China Returns) customers are now refusing delivery of aircraft due to the “tariff environment.” This could impact nearly 50 more planes scheduled for delivery this year.
What Boeing said:
CEO Kelly Ortberg confirmed the situation, adding that Boeing is already looking to re-market 41 planes to other buyers due to high global demand. He made it clear: “We’re not going to keep building planes for customers who won’t take them.”
Behind the scenes:
Ortberg revealed Boeing is in constant contact with President Trump and cabinet members over the trade war, staying “hopeful” for negotiations. Boeing’s CFO emphasized the importance of free trade and promised continuity for the supply chain.
Bigger picture:
Trump hinted that tariff levels might drop “substantially,” but not to zero. Meanwhile, Boeing is recovering from a tough 2024 and plans to ramp up production of its 737 MAX jets in 2025.
By Simon Browning | BBC News
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