After the outbreak of the new round of trade war between the United States and China, the Chinese Communist Party suspended the delivery of Boeing aircraft to Chinese airlines. On Thursday (May 29), Boeing CEO Kelly Ortberg announced that aircraft deliveries to China would resume next month.
According to CNBC, Ortberg stated at the Bernstein conference on Thursday: “China has now indicated…they will accept deliveries.” “The first batch of aircraft will be delivered next month.”
Boeing is the largest exporter in the United States, and its aircraft production helps alleviate the U.S. trade deficit. Ortberg mentioned that the company has been paying tariffs for importing components for the wide-body aircraft it produces in South Carolina from Italy and Japan.
He also added that most tariffs can be recovered when the aircraft are re-exported. “The only tariffs we would need to pay would be for aircraft delivered to U.S. airlines,” he said.
Regarding the rapidly changing trade policies, which include multiple suspensions and some exemptions, Ortberg expressed, “I personally don’t think in the long-term, these measures will be permanent.”
This Thursday, Ortberg reiterated that Boeing plans to increase production of its best-selling 737 Max aircraft this year, pending approval from the U.S. Federal Aviation Administration (FAA).
In 2024, a Boeing aircraft door blew off shortly after an Alaska Airlines flight took off, prompting the FAA to limit production of this flagship model to 38 aircraft per month.
Ortberg stated that by mid-year, the company will be able to produce 42 Max aircraft per month, with the monthly output expected to rise to around 47 aircraft in about six months.
He mentioned that the long-delayed Max 7 and Max 10 models (the largest and smallest in the narrow-body aircraft family, respectively) are expected to be certified by the end of this year.
In April 2025, the Chinese Communist Party instructed Chinese airlines to stop accepting Boeing aircraft and U.S. aircraft components in retaliation for U.S. President Trump’s tariff war.
At that time, Ortberg stated that the company was avoiding broader damage from tariffs. Some aircraft originally planned for delivery to Chinese customers and those intended to be manufactured for China later this year may be redirected to other customers.
“There are many customers seeking MAX aircraft. We won’t wait too long. I won’t let this matter hinder our company’s recovery,” he said.