Boeing could hand over some of its aircraft that were destined for Chinese airlines to other carriers after China stopped taking deliveries of its planes amid a trade war with the United States.
“They have in fact stopped taking delivery of aircraft due to the tariff environment,” Boeing CEO Kelly Ortberg told CNBC’s “Squawk on the Street” on Wednesday.
Ortberg said that a few 737 Max planes that were in China set to be delivered to carriers there have been flown back to the U.S.
He said some jets that were intended for Chinese customers, as well as aircraft the company was planning to build for China later this year, could go to other customers.
“There’s plenty of customers out there looking for the Max aircraft,” Ortberg said. “We’re not going to wait too long. I’m not going to let this derail the recovery of our company.”
The CEO’s comments came after Boeing reported a narrower-than-expected loss for the first quarter and cash burn that came in better than analysts feared as airplane deliveries surged in the three months ended March 31.
President Donald Trump earlier this month issued sweeping tariffs on imports to the U.S. While he paused some of the highest rates, the trade war with China has only ramped up.
Trump said Tuesday that he’s open to taking a less confrontational approach to trade talks with China, calling the current 145% tariff on Chinese imports “very high.”
“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,” Trump said.
Source: CNBC