China has sent back planes it ordered from the US in its latest retaliation over Trump tariffs, the boss of aircraft maker Boeing has said. Kelly Ortberg said two planes had already been returned and another would follow after trade tensions between the two countries escalated. Boeing's chief executive told CNBC that 50 more planes were due to go to China this year but their customers had indicated they will not take delivery of them. The US put 145% tariffs on imports from China and it hit back with a 125% tax on US products. Speaking in the Oval Office on Tuesday, Trump said he wasoptimistic about improving trade relations with China, saying the level of tariffs he had imposed would "come down substantially, but it won't be zero". However, Mr Ortberg said China "have in fact stopped taking delivery of aircraft because of tariff environment". Boeing is America's largest exporter with about 70% of its commercial aircraft sales outside of the US. Mr Ortberg said Boeing was assessing options to re-market 41 of the already built planes to other customers as there was high demand from other airlines. He said there were nine planes not yet in Boeing's production system and he wanted to "understand their intentions and if necessary we can assign to other customers". He added Boeing was "not going continue to build aircraft for customers who will not take them". Later in the afternoon, Mr Ortberg told an investor call "there is not a day that goes by that we're not engaged with either cabinet secretaries or either POTUS himself (President Trump) regarding the trade war between China and the USA." He added he was "very hopeful we'll get to some negotiations". He said others in the Boeing supply chain were now exposed to tariffs - mainly in Japan and Italy where universal tariffs of 10% are being implemented. Brian West, Boeing's chief financial officer said during the call "free trade policy is very important to us" and Boeing will continue to work to with suppliers to ensure continuity. Boeing has reported smaller losses for the first quarter of the year after it manufactured and delivered more planes. Production had slumped in 2024 due to a series of crises and a strike by about 30,000 American factory workers. It wants to increase output of its 737 MAX jets to 38 a month in 2025.
China sends Boeing planes back to US over tariffs
TruthLens AI Suggested Headline:
"China Returns Boeing Aircraft Amid Ongoing U.S. Tariff Dispute"
Bbc News
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TruthLens AI Summary
China has recently returned aircraft ordered from Boeing in response to tariffs imposed by the United States during the ongoing trade tensions between the two countries. Boeing's CEO, Kelly Ortberg, confirmed that two planes have already been sent back, with another on the way, as it has become clear that China has ceased accepting deliveries due to the unfavorable tariff environment. This situation arises after the U.S. implemented a staggering 145% tariff on imports from China, which led to China retaliating with a 125% tax on U.S. goods. Despite President Trump's optimistic remarks about potential improvements in trade relations, stating that the tariffs would be reduced but not eliminated, Boeing is facing significant challenges as customers in China have indicated they will not take delivery of 50 more planes scheduled for this year. Ortberg emphasized that the company is actively seeking alternative buyers for 41 aircraft already built and is assessing the plans for nine additional planes not yet in production, aiming to reallocate resources to other customers who are willing to proceed with purchases.
In addition to the immediate impact on aircraft deliveries, the trade war has broader implications for Boeing's supply chain, particularly affecting suppliers in Japan and Italy, where universal tariffs of 10% are now being enforced. During an investor call, Ortberg reiterated the importance of free trade policies for Boeing's operations and the company's commitment to maintaining continuity with suppliers. Following a challenging period marked by production setbacks and labor strikes, Boeing reported a reduction in losses for the first quarter of the year, driven by increased manufacturing and deliveries. The company aims to ramp up production of its 737 MAX jets to 38 units per month by 2025, indicating a strategic focus on recovery and growth amidst the ongoing uncertainty surrounding U.S.-China trade relations. Ortberg's comments reflect a proactive approach in navigating the complexities of the current trade landscape, as Boeing continues to engage with government officials and seeks to adapt to evolving market conditions.
TruthLens AI Analysis
The recent report about China returning Boeing planes underscores the ongoing trade tensions between the U.S. and China, highlighting the repercussions of tariffs imposed under the Trump administration. Boeing's CEO, Kelly Ortberg, relayed significant developments regarding aircraft deliveries, which point to a deeper economic conflict that could have far-reaching implications.
Intent of the Report
The article aims to inform readers about the tangible effects of the U.S.-China trade war, particularly how it impacts American exports and the aerospace sector. By emphasizing Boeing's challenges, the report seeks to illustrate the broader economic implications of tariffs and trade disputes, possibly advocating for a resolution to avoid further damage.
Public Perception
The narrative might shape public perception by evoking concerns over job security and economic stability among Boeing employees and the wider economy, as the company is a major exporter. There is an underlying message that tariffs are not just political tools but have real-world impacts on businesses and their workers.
Information Omission
While the article provides valuable insights, it may downplay the complexity of trade negotiations and the potential for future agreements, which could lead to a more optimistic outlook. This could lead readers to focus solely on the negative aspects of the current trade climate without considering possible resolutions.
Truthfulness of the Information
The report appears to be grounded in factual statements from Boeing's leadership regarding the company's operational adjustments due to tariffs. However, the framing of the situation may accentuate the negative consequences while minimizing potential positive developments in trade discussions.
Shaping Public Discourse
The article seems to push the narrative that ongoing tariffs are detrimental, potentially galvanizing support for free trade policies among the business community and consumers who may feel the ripple effects of increased costs.
Comparative Context
When compared to other reports on trade and tariffs, this article aligns with a broader trend of highlighting the direct impacts of governmental policies on businesses. This consistent messaging across various outlets may create a unified narrative that emphasizes the adverse effects of protectionist measures.
Economic and Political Implications
The return of aircraft could signify a downturn in U.S.-China relations, affecting not only Boeing but also supply chains and related industries. This scenario could lead to a reassessment of U.S. trade policies if stakeholders advocate for a more balanced approach that encourages dialogue and cooperation.
Target Audience
The report likely resonates more with business communities, policymakers, and economic analysts who are invested in understanding the nuances of international trade. It appeals to those concerned about the implications of tariffs and trade wars on economic performance.
Market Impact
This news could influence stock prices related to Boeing and possibly other companies in the aerospace sector. Investors may react to the uncertainty introduced by trade disputes, impacting market confidence and stock valuations.
Geopolitical Relevance
From a global perspective, this report underscores the shifting dynamics of U.S.-China relations, which are crucial in understanding the current international landscape. The implications of these trade tensions extend beyond economics, affecting diplomatic relations and global market stability.
Use of AI in Reporting
While it is unclear if AI was explicitly used in crafting this report, its structure and analysis suggest a data-driven approach. AI models could assist in generating insights based on market trends and public sentiment, thereby influencing the narrative direction.
Manipulative Potential
There is a possibility of manipulation through the selective emphasis on negative outcomes of tariffs. The language used may incite fear or concern, which can be seen as a tactic to sway public opinion toward advocating for change in trade policies.
In conclusion, while the report presents factual information, it strategically emphasizes the negative impact of tariffs, potentially shaping public perception and discourse around trade policies. The concerns raised by Boeing's situation underscore the complexities of international trade and its implications for the economy.