SEATTLE: Boeing CEO Kelly Ortberg confirmed that China has suspended the acceptance of new aircraft deliveries, citing ongoing trade tensions between Washington and Beijing as the primary cause.
In an interview with CNBC on Wednesday, Ortberg said the halt is directly tied to the current tariff landscape, a lingering effect of the prolonged US-China trade dispute. The aerospace giant had scheduled deliveries of approximately 50 aircraft to Chinese carriers in 2025.
“Chinese customers have stopped taking delivery of aircraft due to the tariff environment,” Ortberg stated. “If this continues, we’ll have to remarket those airplanes—we’re not going to let it derail our recovery.”
Despite the geopolitical headwinds, Boeing shares rose on Wednesday after reporting a narrower-than-expected quarterly loss, underscoring investor confidence in the company’s broader turnaround efforts.
Ortberg added that while Boeing would prefer to fulfil its commitments to Chinese customers, it would pivot quickly if needed. “We’re giving our customers the first opportunity, but we won’t wait too long,” he said.
The US-China standoff poses a significant challenge for Boeing, one of the nation’s largest exporters. The comments come as the White House signals renewed optimism over a possible trade resolution, though no formal tariff negotiations are currently underway, according to Treasury Secretary Scott Bessent.
On a call with analysts, Ortberg described Boeing’s engagement with the US government on trade matters as “very dynamic” and said the company is monitoring developments closely. “We hear encouraging signs that there may be a negotiated settlement, but the timing remains uncertain,” he noted.
Boeing also faces pressure from US tariffs on raw materials and aircraft components, which executives estimate could cost the company up to US$500 million annually. However, under a US duty drawback programme, Boeing may recover customs duties on parts used in exported aircraft—softening the financial impact.
As trade tensions persist, Ortberg expressed concern about broader implications: “A top priority is to ensure we don’t see other countries follow the same path as China.”–CNA
