Seattle, April 24, 2025 – In a dramatic escalation of the ongoing trade war between the United States and China, Boeing Chief Executive Kelly Ortberg confirmed that China has sent back several planes it ordered from the American aerospace giant, citing crippling tariffs imposed by President Donald Trump. The move, described as a direct retaliation to U.S. trade policies, underscores the deepening economic rift between the world’s two largest economies and poses significant challenges for Boeing, America’s largest exporter.
According to Ortberg, two Boeing 737 MAX jets, intended for Chinese carriers including Xiamen Airlines, have already been flown back to Boeing’s production hub in Seattle, with a third expected to follow. The planes, valued at approximately $55 million each, were returned after China imposed a 125% tariff on U.S. goods in response to Trump’s decision to raise tariffs on Chinese imports to 145%. These tit-for-tat measures have rendered the cost of accepting delivery of U.S.-made aircraft financially unfeasible for Chinese airlines.
Read Also: China bans US films in response to Trumps tariffs
“They have in fact stopped taking delivery of aircraft due to the tariff environment,” Ortberg told CNBC’s Squawk on the Street on Wednesday. He added that 50 additional planes, originally slated for delivery to China this year, are now at risk, as Chinese customers have signaled they will not accept them under the current trade conditions. Boeing is actively exploring options to re-market 41 of these already-built aircraft to other global carriers, capitalizing on strong demand from airlines outside China. “We’re not going to wait too long,” Ortberg emphasized, signaling Boeing’s intent to mitigate the financial fallout.
Read Also: Trump Imposes 104% Tariffs on China, Escalating Trade War Tensions
The returned jets, which had been stationed at Boeing’s Zhoushan completion center in China for final interior installations and livery painting, made a 5,000-mile journey back to the U.S., with refueling stops in Guam and Hawaii. The sight of a 737 MAX painted in Xiamen Airlines’ colors landing at Seattle’s Boeing Field on Sunday served as a stark symbol of the trade war’s impact on one of America’s industrial giants.
Boeing’s predicament comes as the company navigates a precarious recovery from a series of setbacks, including a five-year import freeze on 737 MAX jets in China following safety concerns, a labor strike by 30,000 U.S. workers in 2024, and ongoing supply chain disruptions. Despite these challenges, Boeing reported a narrower-than-expected loss of $31 million for the first quarter of 2025, buoyed by increased deliveries. The company aims to ramp up production of its bestselling 737 MAX to 38 planes per month this year, but the loss of Chinese orders threatens to disrupt these plans.
China, which accounts for an estimated 20% of global aircraft demand over the next two decades, has long been a critical market for Boeing. The country’s three major airlines—Air China, China Eastern Airlines, and China Southern Airlines—had planned to take delivery of 179 Boeing planes between 2025 and 2027, deals worth billions of dollars. However, Beijing’s directive to halt deliveries and pause purchases of U.S.-made aircraft parts has thrown these agreements into jeopardy.
Analysts suggest that while Boeing can redirect some planes to other markets in the short term, a prolonged standoff with China could have lasting repercussions. “Boeing should have no difficulty reallocating the aircraft to other airlines that need additional capacity,” said Ronald J. Epstein, an analyst at Bank of America. However, he cautioned that a sustained halt could tilt the competitive balance toward Airbus, Boeing’s European rival, which already holds a dominant position in China.
China’s retaliatory measures extend beyond aircraft deliveries. Bloomberg reported that Beijing has also instructed Chinese carriers to stop purchasing U.S.-made aircraft components, a move that could disrupt maintenance for China’s existing fleet and its domestic C919 jet program. “If China stops buying aircraft components from the U.S., the C919 program is halted or dead,” Epstein noted, highlighting the interdependence of global aerospace supply chains.
Read Also: Trump to consider illegal migrants who work on farms and hotels to become legal workers
The Trump administration, meanwhile, remains defiant. Speaking from the Oval Office on Tuesday, President Trump expressed optimism about negotiating a trade deal with China, suggesting that tariffs could “come down substantially, but it won’t be zero.” However, he also asserted that the U.S. holds the upper hand, stating, “We don’t have to make a deal with them.” Trump’s tariffs, which include a 10% levy on most other trading partners, have sparked global concerns about supply chain disruptions and rising costs for consumers.
China’s Commerce Ministry has condemned the U.S. approach, accusing Washington of using tariffs to “isolate Beijing and distort global trade.” A ministry spokesperson urged the U.S. to “resolve differences through equal-footed dialogue” and cautioned third countries against making trade concessions at China’s expense. President Xi Jinping, speaking during a recent Southeast Asian tour, called for unity against unilateral economic pressure, signaling China’s intent to rally international support.
Read Also: Trump administration set to meet 130 countries to re-negotiate fairer trade deals with the USA
For Boeing, the stakes are high. With 5,600 planes on order globally and 70% of its commercial sales coming from international markets, the company is particularly vulnerable to trade disruptions. Ortberg revealed that Boeing is in daily discussions with Trump administration officials, including the president himself, to address the crisis. “It’s an unfortunate situation, but we have many customers who want near-term deliveries,” he said, projecting confidence in Boeing’s ability to weather the storm.
As the trade war intensifies, the return of Boeing’s planes from China marks a new low in U.S.-China economic relations. With both sides digging in, the aerospace industry—and the broader global economy—braces for further turbulence.
Sources: Reuters, CNBC, Bloomberg, BBC News
