Boeing is preparing to reroute up to 50 aircraft originally ordered by Chinese airlines, following a sharp escalation in tariffs between the United States and China, The Guardian reports.
The US aerospace giant has confirmed that two jets have already returned from China, with a third en route, after Beijing imposed 125% tariffs on American imports. These measures came in response to steep US tariffs of 145%, a development that threatens to strain global economic stability.
In an effort to navigate what it described as an “unfortunate situation,” Boeing is lobbying President Donald Trump directly while working to identify alternative buyers for the affected aircraft. Several international airlines have already expressed interest, and the company is prepared to “re-market” and repaint the jets in new liveries where necessary.
Production is already under way for 41 aircraft originally destined for Chinese customers, with a further nine scheduled for delivery later this year. Boeing Chief Executive Kelly Ortberg stated, “Many of our customers in China have indicated they are not taking delivery,” but added, “It’s an unfortunate situation, but we have many customers who want near-term deliveries.”
Despite the geopolitical uncertainty, Boeing posted improved results, with first-quarter losses narrowing to US$31 million (£23.4m), down from US$355 million the previous year. Demand for aircraft remains strong, with a backlog of 5,600 orders and continued plans to raise production of the bestselling 737 Max to 38 units per month. Boeing shares rose 5.7% on Wednesday.
Ortberg reiterated his view that both Boeing and its rival Airbus favour a “non-tariff environment,” contrasting with the belief that tariffs are a viable strategy for restoring domestic manufacturing dominance.
