Boeing CEO says China halted taking deliveries of aircraft due to US tariffs

“They have in fact stopped taking delivery of aircraft due to the tariff environment,” Ortberg told CNBC.

According to Ortberg, several 737 Max jets that were set for delivery to Chinese carriers have already been flown back to the United States. He noted that aircraft previously intended for Chinese customers, including ones the company was planning to build, may now be redirected to other global buyers. Boeing has long sought to expand its presence in China and compete with Airbus, which currently dominates the country’s market.

“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.”

Boeing reported a narrower-than-expected loss for its first quarter. This comes despite President Donald Trump’s enactment of sweeping tariffs on foreign imports, including a 145 percent tariff on Chinese goods entering the US.

Despite the aggressive stance on trade with China, Trump has signaled a willingness to negotiate with the country. He called the tariff amount “very high” and has stated it could come down as negotiations continue.

“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.

Trump previously stated that Chinese officials have reached out “a lot” regarding the tariffs on Chinese imports, and a trade deal could be reached within weeks.