Tensions between the United States and China have been high in recent weeks as a result of a trade war between the two countries. And it sounds like one major U.S. company has been impacted.
Boeing Co. is one of the largest manufacturers of commercial airliners not just in the United States, but in the entire world. The company is listed on both the Fortune 500 list as well as the Fortune Global 500 list.
However, as a result of the trade war with the United States, it sounds like China is refusing to do business with the aircraft manufacturer.
During an appearance on CNBC’s
“Squawk on the Street”
on Wednesday, Boeing CEO Kelly Ortberg revealed that China has refused the delivery of a few Boeing planes that were set to be delivered to China to be used by their commercial airlines.
“They have in fact stopped taking delivery of aircraft due to the tariff environment,” Ortberg said during the interview.
Ortberg revealed that a few 737 Max planes that were in China and were set to be delivered to airlines in the nation have instead been flown back to the United States.
However, Ortberg does not seem all that worried about the turn of events. Instead, those plans will simply be sold elsewhere.
“There’s plenty of customers out there looking for the Max aircraft,” Ortberg said. “We’re not going to wait too long. I’m not going to let this derail the recovery of our company.”
Obviously, companies throughout both countries are having to cope with the impacts of the trade war between the two nations. But this is certainly a high-profile example of how the tariffs are directly affecting one of the largest companies in the United States.
