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Boeing has a $1 billion China problem — and a fix
BABoeing(BA) Business Insider·2025-04-24 06:43

Group 1 - Boeing is facing challenges due to the US-China trade war, with approximately 50 planes worth over 1billioninrevenuethatcannotbedeliveredtoChinesecustomersduetotariffs[1][2]Chinaconstitutes101 billion in revenue that cannot be delivered to Chinese customers due to tariffs [1][2] - China constitutes 10% of Boeing's commercial backlog, prompting the company to seek alternative markets with more stable demand [1][3] - Boeing reported a first-quarter revenue of 19.5 billion, an 18% increase from the previous year, and narrowed its losses to 31million[3]Group2ChineseairlineshavereturnedtwocompletedplanestotheUS,withplansforathirdreturn,whileothercustomersareinterestedintakingoverdeliveryslotsduetopreviousdelays[2]BoeingexecutivesareactivelyengagingwiththeUSadministrationregardingtariffsandtheirpotentialimpactontrade,emphasizingthesignificanceofaircraftinthetradesurplus[6][7]Thecompanyestimatesthathighertariffscouldresultinanannualcostof31 million [3] Group 2 - Chinese airlines have returned two completed planes to the US, with plans for a third return, while other customers are interested in taking over delivery slots due to previous delays [2] - Boeing executives are actively engaging with the US administration regarding tariffs and their potential impact on trade, emphasizing the significance of aircraft in the trade surplus [6][7] - The company estimates that higher tariffs could result in an annual cost of 500 million, despite most of its supply chain being based in the US and having tariff exemptions for imports from Mexico and Canada [8]