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Boeing is facing significant setbacks due to the ongoing trade tensions between the U.S. and China.

The American aircraft manufacturer revealed it has around 50 planes that need to be sold to other airlines, as Chinese customers have refused to take deliveries due to the imposed tariffs. Boeing's CEO, Kelly Ortberg, acknowledged that China is currently the main issue affecting the company and assured efforts to mitigate the impact of the situation on Boeing’s recovery.

According to Boeing’s CFO, Brian West, China represented 10% of the company’s commercial backlog, and they are exploring ways to redirect the planes to regions with more stable demand. The 50 planes originally intended for China are valued at over $1 billion in revenue. Chinese airlines have already returned two completed planes to the U.S., and plans are in place to return a third one, Ortberg said.

Despite these challenges, other customers are stepping in due to years of delivery delays. Malaysia Aviation Group, the parent company of Malaysia Airlines, has expressed interest in taking over the delivery slots.

Boeing reported an 18% increase in first-quarter revenue, totaling $19.5 billion, and reduced its losses to $31 million. The company’s stock rose by 6% on Wednesday.

Executives from Boeing also voiced concerns about President Trump's tariffs on global trade, particularly the possibility of other countries following China’s lead. Ortberg highlighted that aircraft are a significant part of the U.S. trade surplus, and any closures of foreign markets could pose serious challenges.

 Boeing executives also pointed out that although much of their supply chain is based in the U.S., many imports from Mexico and Canada benefit from tariff exemptions, but higher tariffs could still cost the company $500 million annually.

Boeing is in the midst of recovering from a tough year, marked by a workers' strike and financial losses. However, the delivery disruptions are now threatening its market share, especially as it competes with Airbus from Europe and newer Chinese players in the aviation industry.

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