Pius Nsabe
The boss of aircraft maker, Boeing, says China has sent back planes it ordered from the US in its latest retaliation over Trump tariffs. Kelly Ortberg said two planes had already been returned and another would follow after trade tensions between the two countries escalated.
Boeing’s chief executive told CNBC that 50 more planes were due to go to China this year but their customers had indicated they will not take delivery of them.
The US put 145% tariffs on imports from China and it hit back with a 125% tax on US products.
Meanwhile, there are some indications that the current frosty trade relations between the US and China will ease off soon. Speaking in the Oval Office on Tuesday, Trump said he was optimistic about improving trade relations with China, saying the level of tariffs he had imposed would “come down substantially, but it won’t be zero”.
However, Mr Ortberg said China “have in fact stopped taking delivery of aircraft because of tariff environment”.
Boeing is America’s largest exporter with about 70% of its commercial aircraft sales outside of the US. Mr Ortberg said Boeing was assessing options to re-market 41 of the already built planes to other customers as there was high demand from other airlines.
He said there were nine planes not yet in Boeing’s production system and he wanted to “understand their intentions and if necessary, we can assign to other customers”. He added Boeing was “not going continue to build aircraft for customers who will not take them”.
From all indications so far, the United States, which triggered the recent global trade war, is by no means spared of the economic toll the move is having on the global market. With President Trump seemingly soft pedaling and rescinding his earlier tough posture on the tariff war against China, it is hoped that things will return to normal soon, giving rise to free flow of trade across the globe.
