Boeing Adjusts Strategy Amid Trump Tariff Fallout, CEO Kelly Ortberg Says Won't 'Build Aircraft For Customers Who Will Not Take Them' As China Halts Deliveries

Boeing Co. BA is implementing a strategic pivot in response to China’s halt of aircraft deliveries amid escalating tariff tensions, according to statements made during the company’s first quarter of 2025 earnings call.

What Happened: CEO Kelly Ortberg confirmed that Chinese customers have indicated they will not take delivery of Boeing aircraft following China’s implementation of 125% retaliatory tariffs on U.S.-made goods, a response to President Donald Trump‘s 145% tariffs on Chinese imports.

“Due to the tariffs, many of our customers in China have indicated they will not take delivery,” Ortberg said during the earnings call. “We’re not going to continue to build aircraft for customers who will not take them.”

Boeing has approximately 50 China deliveries planned for the remainder of 2025, including 41 aircraft already built or in production. The company is actively assessing options to remarket these planes to other customers, with Ortberg noting strong demand elsewhere.

“There’s plenty of customers out there looking for the Max aircraft,” Ortberg told CNBC. “I’m not going to let this derail the recovery of our company.”

See Also: Tesla Q1 Misses Estimates As Tariff Pressures Weigh On Outlook, Lower-Cost EVs Still On Track

Why It Matters: Despite these challenges, Boeing reported better-than-expected first-quarter results with revenue increasing 18% year-over-year to $19.5 billion. The company delivered 130 aircraft in the quarter, exceeding internal projections, and reported a core operating margin recovery to 1% from -2.3% a year ago.

The company expects to largely offset any potential cash flow impact from the China situation, maintaining its cash usage projection of $4-5 billion for the year.

“We had a really good start to the year operationally, which we believe puts us in a position to largely offset any potential cash flow impact of China deliveries,” said CFO Brian West.

Price Action: Boeing Co. closed at $172.37 on Thursday, up 6.06%. After hours, it slipped slightly to $172.36. Year to date, the stock is up 0.29%.

Boeing shows weak growth and valuation metrics, according to Benzinga Edge Stock Rankings. While the stock has positive momentum, BA continues to exhibit a negative price trend in the short to long term. Sign up to learn more.

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Photo Courtesy: Andreas Zeitler On Shutterstock.com

Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.