Boeing has confirmed that its Chinese customers are declining to take delivery of new aircraft due to retaliatory tariffs imposed by Beijing, as a third 737 MAX 8 jet began its return journey to the United States on Thursday.
CEO Kelly Ortberg, during the company’s first-quarter earnings call, stated that Chinese clients have indicated they will not proceed with deliveries because of the tariffs. He added that this issue is unique to China, and Boeing plans to redirect the affected jets to other buyers amid a global aircraft shortage.
Previously, commercial aircraft were exempt from trade duties under a 1979 civil aviation agreement. However, escalating trade tensions have altered this framework, making Boeing jets — such as the $55 million 737 MAX — subject to new tariffs in China.
Recently, two 737 MAX 8 aircraft initially destined for Xiamen Airlines returned from China to Boeing’s Seattle facility. A third jet, originally built for Air China, departed Boeing’s Zhoushan completion center and is now en route to the US, with Guam as a refueling stop.
The Chinese government has not commented on the aircraft returns. Boeing’s CFO, Brian West, noted that China accounts for approximately 10% of the company’s commercial plane backlog. Of 50 planned deliveries to China this year, 41 are already completed or under construction. Boeing is now exploring re-marketing options for these planes.
Ortberg emphasized that aircraft will not continue to be built for customers unwilling to accept them. Boeing has 130 unfilled Chinese orders, including 96 for the 737 MAX, and is assessing demand from other global carriers.
