Amid soaring US-China tariffs, Boeing explores resale of undelivered jets to markets like India
WASHINGTON: Former U.S. President Donald Trump has sharply criticized China over its refusal to accept a batch of Boeing planes, saying the aerospace giant should “default China” for breaking its commitments. His comments, shared on social media Thursday, reignite tensions in the ongoing U.S.-China trade war.
“Boeing should default China for not taking the beautifully finished planes that China committed to purchase,” Trump wrote, claiming this rejection is just “a small example” of what China has done to hurt the U.S. economy.
The remarks follow confirmation by Boeing CEO Kelly Ortberg that Chinese customers have halted aircraft deliveries due to the “tariff environment.” The announcement signals a broader disruption in one of Boeing’s most important export markets.
Trade War Fallout: Boeing Jets Rejected
Trump’s comments come as U.S.-China economic tensions intensify. The U.S. has imposed tariffs as high as 145% on Chinese imports, while China retaliated with 125% duties on U.S. goods — including aircraft. Boeing, which once delivered a quarter of its jets to China, now finds itself with dozens of grounded, unsold planes.
In response, Boeing is actively pursuing new buyers. According to two sources familiar with the matter, Air India is in talks with Boeing to acquire around 10 of the rejected 737 Max jets for its budget subsidiary, Air India Express.
Resale to India and Beyond
Boeing CFO Brian West told analysts that customer interest remains high. “Customers are calling, asking for additional airplanes,” he said, noting the planemaker is now working to re-market 41 already-built jets.
Air India is reportedly interested in acquiring some of these aircraft before the end of the year. This could provide a significant boost to the airline’s fleet expansion, which has been hampered by delays from both Boeing and Airbus.
“Air India is very interested … if the deal goes through, the planes are expected to be added to the fleet by end of the year,” one industry insider stated. However, any differences in cabin configuration may factor into the final pricing.
Not a Simple Switch
Experts caution that repurposing jets originally configured for Chinese airlines can be costly. Custom interiors, electronics, and regulatory certifications often require expensive adjustments, creating both logistical and financial hurdles.
“Finding new customers after planes are built can be a costly endeavour,” industry publication Leeham News wrote. These complexities could delay resale efforts or reduce profit margins.
Boeing’s Balancing Act
While Beijing has not issued an official ban on U.S. jets, deliveries are at a near-standstill. A third 737 MAX, originally intended for Air China, was spotted flying back from Boeing’s Zhoushan facility to the U.S. territory of Guam this week, underscoring the impasse.
Boeing is now trying to avoid a repeat of its previous build-up of undelivered jets, such as during the MAX grounding or earlier U.S.-China trade tensions. “We’re not going to continue to build aircraft for customers who will not take them,” Ortberg affirmed.
Global Impact
The dispute highlights how deeply intertwined aviation is with geopolitics. While Airbus courts large Chinese orders, Boeing is looking toward markets in India, Latin America, and Southeast Asia. Yet, negotiations remain complex amid tariff uncertainty and fierce competition.
For now, Trump’s call for action and Boeing’s re-marketing strategy reflect a wider shift in global trade flows — one that could reshape the future of commercial aviation.
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Categories: US Politics, Global Trade, Aviation News
Tags: Trump, Boeing, China, Air India, 737 MAX, trade war, aviation
