**Trade War Turbulence: Boeing's High-Stakes Clash with China**

In a dramatic escalation of the trade war, China has returned several Boeing planes as retaliation for steep US tariffs. Boeing’s CEO, Kelly Ortberg, revealed that two planes have already been sent back, with another on the way. This move comes against a backdrop of increasing trade tensions, sparked by the 145% tariffs imposed by the US on Chinese imports, leading China to respond with a 125% tariff on US goods.

Ortberg articulated concerns regarding Boeing’s future dealings with China, as he stated that despite expecting to deliver 50 more planes this year, customers have indicated they will refuse to receive them due to the tariff situation. He noted a shift in their strategy, discussing plans to re-market 41 already built planes due to a high demand from other airlines, emphasizing that Boeing will not continue to produce aircraft for clients who won’t accept them.

Despite this setback, President Trump expressed optimism about improving trade relations, suggesting that tariffs could be reduced, although not completely eliminated. Ortberg maintains an ongoing dialogue with government officials, indicating that there’s a daily engagement concerning the trade dispute.

Treasury Secretary Scott Bessent also highlighted the potential for a significant agreement between the US and China at an upcoming meeting, provided China is willing to change its reliance on manufacturing exports.

On a financial note, Boeing is focusing on continuity for its supply chains, which are also feeling the impacts of tariffs, particularly those in Japan and Italy. After a year of struggles, Boeing has reported smaller losses in the last quarter, driven by increased production and deliveries, aiming to ramp up output of its 737 MAX jets to 38 per month by 2025.