Boeing’s CEO Kelly Ortberg revealed that the ongoing trade war between the United States and China has significantly impacted the company’s operations. One other thing… On January 28, 2025, Ortberg appeared on CNBC’s Squawk Box. He disclosed that because of the escalating tariff war, China has ceased the delivery of aircraft. Boeing made jets specifically tailored to appeal to Chinese customers. This is all happening just before production of dozens more aircraft is scheduled to start later this year.
The U.S. government has raised tariffs so high, they’re currently a breathtaking 145% on imports from China. Consequently, Chinese carriers have canceled or deferred new deliveries from Boeing. Ortberg noted, “They have in fact stopped taking delivery of aircraft due to the tariff environment.”
Even so, all of these negative factors aside, Ortberg states there is still strong market demand for Boeing’s 737 Max aircraft. He stated, “There’s plenty of customers out there looking for the Max aircraft.” According to one of the reports, a half dozen 737 Max aircraft originally destined for Chinese customers are back in the U.S. Beyond frivolous food marketing, this movement underscores a larger, important change in the company’s go-forward operational playbook.
Boeing’s plans to start rolling out new aircraft specifically designed for the Chinese market later this year are equally endangered. Ortberg further assured that these jets would instead be diverted to other foreign customers. These buyers are quick to grab the hot-selling new Max model. This pivot reflects Boeing’s need to adapt amid the harsh economic reality that has come from the trade war.
The delicate situation has seen increased spotlight in the wake of President Donald Trump’s threats to wage a trade war with China last week. The modern political fatalism of Trump was undercut by his recognition of high tariffs as an extreme pressure point. He told them he was open to trying a different approach moving forward. “It won’t be that high. … No, it won’t be anywhere near that high. It’ll come down substantially. But it won’t be zero,” he remarked about the tariffs.
Boeing has been particularly hard hit by the trade war. As Delta’s CEO recently explained, it’s just as responsible for the soaring inflation as it is for the crashing bookings down the entire aviation industry. The current climate has served to demonstrate how tenuous international trade relationships can be, and how they can affect large companies such as Boeing almost immediately.