Boeing plans to redirect orders destined for Chinese carriers due to tariffs

Boeing has confirmed that Chinese customers are rejecting new aircraft deliveries due to increased tariffs, prompting the planemaker to offer the aircraft to other buyers. 

This decision follows US President Donald Trump’s implementation of tariffs on international trade partners on April 2, 2025, citing a “national emergency posed by the large and persistent trade deficit.” On April 9, 2025, Trump raised the tariffs on Chinese imports to the US to 145%. 

During Boeing’s earnings call on April 23, 2025, CEO Kelly Ortberg said the company is looking for ways to “keep focused on the right products and capabilities for future” in light of the current tariff environment. 

Ortberg also said that the input tariffs from the first quarter of 2025 were “immaterial” and did not impact the planemaker’s deliveries. 

“Much of our supply chain is based in the United States and many of our imports from Canada and Mexico are exempt under the United States-Mexico-Canada Agreement (USMCA),” Ortberg said. 

However, Ortberg did note that Boeing also uses suppliers in countries affected by the new tariffs, especially in Japan and Italy, where suppliers carry out “significant structures work” on Boeing’s widebody airplanes. He noted that Boeing is currently paying a 10% tariff on these parts but expects to recover those costs for aircraft that are subsequently exported. 

Another concern for the planemaker is the possible retaliatory tariffs that could affect aircraft delivery. Ortberg said that the only region facing delivery issues is China, where many of Boeing’s customers have said they will refuse delivery due to the tariffs. 

Boeing planned to deliver approximately 50 aircraft to customers in China during the remainder of the year. Boeing’s Chief Financial Officer Bryan West stated that “there is strong demand for these airplanes “and the company is “actively assessing” options to redirect China aircraft that are already built or in-production. 

According to West, the overall effect of increased tariffs on Boeing’s supply costs is “manageable” and under $500 million each year. 

“Right now, China’s our only problem and we’re going to work our tail off to make sure that China issue doesn’t implicate our recovery and particularly our stability in our production system,” Ortberg said. 

Ortberg stated that customers are “calling asking for additional airplanes”, indicating that the new tariff situation will be a “short-term challenge” for the aircraft manufacturer. 

“It’s an unfortunate situation but we have many customers who want near-term deliveries so we plan to redirect the supply to the stable demand and we’re not going to continue to build aircraft for customers who will not take them,” Ortberg explained. 

Ortberg also expressed hope that “over time these tariffs can be resolved through negotiated agreements.” 

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