Boeing CEO says China has stopped taking its aircraft amid trade war

Boeing may hand over a few of its aircraft that have been destined for Chinese language airways to different carriers after China stopped taking deliveries of its planes amid a trade war with the US.

“They’ve in reality stopped taking supply of aircraft as a result of tariff setting,” Boeing CEO Kelly Ortberg advised CNBC’s “Squawk on the Road” on Wednesday.

Ortberg mentioned that a number of 737 Max planes that have been in China set to be delivered to carriers there have been flown again to the U.S.

He mentioned some jets that have been supposed for Chinese language clients, in addition to aircraft the corporate was planning to construct for China later this 12 months, may go to different clients.

“There’s loads of clients on the market searching for the Max aircraft,” Ortberg mentioned. “We’re not going to attend too lengthy. I am not going to let this derail the restoration of our firm.”

The CEO’s feedback got here after Boeing reported a narrower-than-expected loss for the primary quarter and money burn that got here in higher than analysts feared as airplane deliveries surged within the three months ended March 31.

President Donald Trump earlier this month issued sweeping tariffs on imports to the U.S. Whereas he paused a number of the highest charges, the trade war with China has solely ramped up.

Trump mentioned Tuesday that he is open to taking a much less confrontational method to trade talks with China, calling the present 145% tariff on Chinese language imports “very excessive.”

“It will not be that top. … No, it will not be anyplace close to that top. It will come down considerably. But it surely will not be zero,” Trump mentioned.