Boeing is grappling with significant disruptions due to an escalating trade conflict with China. Chinese airlines have rejected accepting new deliveries of Boeing aircraft, most notably a Boeing 737 Max8 that was originally intended for Xiamen Airlines but returned to the U.S. as a result of the ongoing trade dispute.
According to Insider Monkey, the U.S. has levied tariffs as high as 145% on certain Chinese imports, while China has retaliated with tariffs of 125% on U.S. goods, including American aircraft. This trade gridlock has cast uncertainty on Boeing's plans to deliver around 50 aircraft to China by 2025, putting these orders in jeopardy. Despite the turmoil, Boeing reported an 18% revenue increase in the first quarter of 2025, reflecting the complexity of its current market situation.
In response to these challenges, Boeing's CEO Kelly Ortberg has announced the company's strategy to remarket unsold jets to other carriers. This move aims to mitigate potential impacts from suspended Chinese orders. Meanwhile, Boeing continues to ramp up production of the MAX aircraft, suggesting a drive to maintain supply chain momentum in the face of international trade volatility.
