Boeing Confirms Aircraft Shipments to China Halted Due to Tariffs

The aviation giant reported a loss of US$123 million in the first quarter, smaller than the US$343 million loss in the year-ago period. Revenues rose 18 per cent to US$19.5 billion.

Boeing’s CEO confirmed on Wednesday (April 23) that China has halted acceptance of new aircraft due to ongoing tensions in the US-China trade war. The announcement comes as Boeing’s shares surged, buoyed by investor optimism after the company reported a smaller-than-expected quarterly loss, signaling resilience amid geopolitical and supply chain challenges.

In a televised interview with CNBC, Boeing chief executive Kelly Ortberg said Chinese customers had “stopped taking delivery of aircraft due to the tariff environment”, adding that if the halt continued, the aviation giant would soon market the jets to other carriers.

US President Donald Trump’s trade conflicts with China and other countries loom as a question mark for Boeing, a major US exporter, despite Wednesday’s solid results.

Boeing had planned to deliver around 50 aircraft to China in 2025, said Ortberg, adding that the company would not “wait too long” to send the jets to other customers.

“I’m not going to let this derail the recovery of our company, so we will give the customers an opportunity if they want to take the airplanes,” Ortberg said.

“That’s what we prefer to do. But if not, we are gonna remarket those airplanes.”

The comments came as Trump and top administration officials have, over the last day, spoken more optimistically about a trade accord with China.

But Treasury Secretary Scott Bessent told reporters on Wednesday that Washington is “not yet” speaking with Beijing on tariffs.

Boeing’s engagement with the White House on trade has been “very dynamic”, Ortberg said on a conference call with analysts.

“I can’t predict” the course of trade talks, Ortberg said. “We do hear signs that indicate that there will be negotiated settlements… I just don’t know the timing.”

A priority is “to make sure we don’t see more countries in a similar boat as where we are with China”, Ortberg said.

Boeing downplayed the impact of Trump’s tariffs, saying steel and aluminium make up only 1 or 2 per cent of aircraft costs, with most of the raw material supplied domestically anyway.

Under a US duty drawback programme, Boeing can recover custom duties on certain goods when they export the taxed item.

The company reaffirmed that production of its 737 MAX will hit 38 per month in 2025, while output of the 787 Dreamliner will climb to seven per month from five per month.

Boeing said it still expects the first delivery of the 777-9 in 2026.

Boeing on Tuesday announced plans to sell portions of its digital aviation solutions business to software-focused investment firm Thoma Bravo for US$10.6 billion as it seeks to bolster its financial position.