SEOUL: Boeing’s Chinese customers are refusing delivery of new planes built for them due to tariffs, the US planemaker has confirmed, as a third Boeing jet started returning to the US on Thursday.
“Due to the tariffs, many of our customers in China have indicated that they will not take delivery,” CEO Kelly Ortberg said during a first quarter earnings call on Wednesday.
Ortberg said China was the only country where Boeing was facing this issue and the planemaker would redirect new jet supply to other customers eager for earlier deliveries due to a global shortage of new commercial planes.
Before President Donald Trump’s global trade offensive, commercial jets were traded duty-free worldwide under a 1979 civil aviation agreement.
A Chinese airline taking delivery of a Boeing jet could now be hit hard by the retaliatory tariffs imposed by Beijing on the import of US goods. A new 737 MAX has a market value of around $55 million, according to IBA, an aviation consultancy.
Two 737 MAX 8s, which had been ferried to China in March for delivery to Xiamen Airlines, returned to Boeing’s production hub in Seattle in the past week.
A third 737 MAX 8 left Boeing’s Zhoushan completion center near Shanghai for the US territory of Guam on Thursday, data from flight trackers AirNav Radar and Flightradar24 showed.
The plane was initially built for national carrier Air China, according to the Aviation Flights Group tracking database. Air China did not immediately respond to a request for comment.
It had been ferried from Seattle on April 5, in the period between Trump first announcing tariffs on China and Beijing starting to enforce its own ramped up tariffs on US goods.
Guam is one of the stops such flights make on the 5,000-mile (8,000-km) journey across the Pacific between Seattle and Zhoushan, where planes are ferried by Boeing for final work and delivery to a Chinese carrier.
The Chinese government has not commented on why the planes were being returned.
Order book
CFO Brian West said that China represents around 10 percent of Boeing’s backlog of commercial planes.
Boeing had planned to deliver around 50 new planes to China during the rest of the year, West said, and was assessing options for re-marketing the 41 already built or in-process airplanes.
“For the nine airplanes not yet in the production system, we’re engaged with our customers to understand their intentions for taking delivery and if necessary, we have the ability to assign those positions to other customers,” Ortberg said.
“We’re not going to continue to build aircraft for customers who will not take them,” Ortberg said.
Tracking data from Aviation Flights Group shows 36 built aircraft for Chinese customers at various stages of production and testing are now in the US, including the three returned planes.
Boeing data shows 130 unfilled orders for China-based airlines and lessors, including 96 of its best-selling 737 MAX model. Industry sources say a significant portion of the more than 760 unfilled orders for which Boeing has yet to name a buyer are for China.
The tariff war comes as Boeing has been recovering from an almost five-year import freeze on 737 MAX jets into China and a previous round of trade tensions.
West said the issue is a short-term challenge, and that either China starts taking planes again, or Boeing prepares the jets for re-marketing.
“Customers are calling, asking for additional airplanes,” he said.
Washington signaled openness to de-escalating the trade war this week, stating that high tariffs between the United States and China are not sustainable.
However, analysts say that confusion over changing tariffs could leave many aircraft deliveries in limbo, with some airline CEOs suggesting they would defer plane delivery rather than pay duties.
Boeing confirms Chinese customers rejecting new jets due to tariffs
https://arab.news/r9kmf
Boeing confirms Chinese customers rejecting new jets due to tariffs
- Two 737 MAX 8s, which had been ferried to China in March for delivery to Xiamen Airlines, returned to Boeing’s production hub in Seattle in the past week
- A third 737 MAX 8 left Boeing’s Zhoushan completion center near Shanghai for the US territory of Guam on Thursday
Judge suspends the dismantling of US Education Department
WASHINGTON: A US federal judge on Thursday suspended President Donald Trump’s executive order that effectively eliminates the country’s Education Department and ordered the reinstatement of hundreds of fired employees.
In March, the department announced that it was slashing staff numbers by nearly half, shortly after Trump issued an executive order instructing Education Secretary Linda McMahon to “put herself out of a job.”
That move was hailed by Trump’s supporters on the right, but by law, the department created in 1979 cannot be shuttered without the approval of Congress.
Around 20 states, along with teachers’ unions have challenged the decisions in court, arguing that the government is violating the principle of separation of powers by encroaching on Congress’s prerogatives.
A federal judge in the northeastern city of Boston agreed with the plaintiffs, suspending the executive order and ordering the reinstatement of hundreds of dismissed employees.
“This court cannot be asked to cover its eyes while the Department’s employees are continuously fired and units are transferred out until the Department becomes a shell of itself,” Judge Myong Joun said in his ruling.
Traditionally, the federal government has had a limited role in education in the United States, with only about 13 percent of funding for primary and secondary schools coming from federal coffers, the rest being funded by states and local communities.
But federal funding is invaluable for low-income schools and students with special needs. And the federal government has been essential in enforcing key civil rights protections for students.
The Education Department cannot be completely dismantled without Congress’s approval, including 60 votes in the Senate where the ruling Republicans currently hold 53 seats.
G7 to ‘maximize pressure’ on Russia if it resists Ukraine ceasefire
- Diplomatic efforts to end the conflict have stepped up in recent weeks
- The Kremlin said Thursday that new peace talks with Ukraine had “yet to be agreed“
BANFF, Canada: G7 finance ministers agreed Thursday to “maximize pressure” on Russia, including through further sanctions, if it resists efforts toward a ceasefire in Ukraine.
“If such a ceasefire is not agreed, we will continue to explore all possible options, including options to maximize pressure such as further ramping up sanctions,” a final communique following the group’s meeting in Canada said.
Diplomatic efforts to end the conflict have stepped up in recent weeks, with Russian and Ukrainian officials holding their first face-to-face talks in more than three years last week in Istanbul.
But the Kremlin said Thursday that new peace talks with Ukraine had “yet to be agreed,” disputing reports the two nations would soon hold negotiations at the Vatican.
US President Donald Trump spoke with Russian counterpart Vladimir Putin on Monday in a call aimed at ending the “bloodbath,” but neither his contact nor the earlier talks in Istanbul resulted in Russia offering any concessions.
The communique from the Group of Seven advanced economies condemned “Russia’s continued brutal war against Ukraine” and said any entity that supported Russia during the conflict would be barred from Ukrainian reconstruction contracts.
“We agree to work together with Ukraine to ensure that no countries or entities, or entities from those countries that financed or supplied the Russian war machine will be eligible to profit from Ukraine’s reconstruction,” it said.
Federal judge blocks immigration authorities from revoking international students’ legal status
- Students could still be arrested for other reasons and their legal status can still be revoked
- Most courts hearing these types of cases have granted protections to the person suing
SAN FRANCISCO: A judge in California blocked the Trump administration Thursday from terminating the legal status of international students nationwide while a court case challenging previous terminations is pending.
The order by US District Judge Jeffrey S. White in Oakland bars the government from arresting, incarcerating or moving students elsewhere based on their legal status until the case is resolved.
Students could still be arrested for other reasons and their legal status can still be revoked if they are convicted of a violent crime carrying a prison term of more than a year.
Most courts hearing these types of cases have granted protections to the person suing, but White said the government’s actions “wreaked havoc” not only on the lives of plaintiffs but other nonimmigrants in the US on student visas.
White, who was nominated by President George W. Bush, a Republican, issued the nationwide injunction sought by attorneys for about two dozen students who sued after their legal status was abruptly terminated in early April by Immigration and Customs Enforcement.
More than 4,700 international students had their permission to study in the US canceled this spring, with little notice or explanation, as part of President Donald Trump’s crackdown on immigrants and foreign nationals. In court hearings, Department of Homeland Security officials said they ran the names of student visa holders through an FBI-run database that contains the names of suspects and people who have been arrested, even if the charges were dropped or they were never charged with a crime.
Some students left the US rather than risk being deported to a third country.
Government lawyers say the administration is exercising its prerogative to administer the Immigration and Nationality Act. They say students do not need the court’s protections because ICE reinstated legal status and was mailing status reactivation letters to affected students.
But White found those actions insufficient. He said that the erroneous revocation remained in the students’ record, impacting their ability to obtain a new visa or change their nonimmigrant status. Some students are still dealing with fallout from the previous terminations and there is no guarantee they won’t have their legal status revoked again on a whim.
He also chastised the administration for unveiling new policies or new actions in an apparent attempt to satisfy the courts’ concerns.
“It is unclear how this game of whack-a-mole will end unless Defendants are enjoined from skirting their own mandatory regulations,” White wrote.
A survey by The Associated Press-NORC Center for Public Affairs research found that even the visa revocations for students who participated in pro-Palestinian protests are more unpopular than popular. About half of US adults oppose this policy, and only 3 in 10 are in support.
Among college educated adults, 6 in 10 strongly oppose, compared with 4 in 10 who aren’t college graduates.
Panama resumes flights to Venezuela, allowing for migrant returns
- Venezuela suspended air links with Panama in July 2024
- The resumption of flights is expected to facilitate the repatriation from Panama of Venezuelan migrants deported from the US
PANAMA CITY: Panama’s civil aviation authority on Thursday announced that it would resume flights with Venezuela after nearly a year, facilitating the repatriation of Venezuelan migrants expelled from the United States.
Venezuela suspended air links with Panama in July 2024 over its refusal to recognize Venezuelan President Nicolas Maduro’s victory in presidential elections.
The two countries at the time also suspended diplomatic relations.
The resumption of flights is expected to facilitate the repatriation from Panama of Venezuelan migrants deported from the United States.
Panamanian President Jose Raul Mulino said earlier he had received a proposal from Caracas to resume flights between the two countries.
“I will evaluate it very carefully right away,” he told his weekly press conference, adding “it is in Panama’s best interest to open commercial flights to Venezuela.”
Mulino however ruled out restoring diplomatic relations with the Caribbean nation.
Panama is one of a handful of countries that has agreed to act as a stopover for migrants expelled from the United States by President Donald Trump’s administration.
Under the plan, Panama holds the migrants in closed shelters while waiting for them to be repatriated to their homelands.
Many of those expelled so far have been from Venezuela and other South American countries.
Panama has also been grappling with a reverse flow of thousands of migrants returning home through Central America after failing to gain entry to the Untied States.
In the absence of flights between Panama and Venezuela, many of the migrants were left to organize their own transport home, either by boat or overland through the treacherous Darien jungle on Panama’s border with Colombia.
Homeland Security blocking Harvard’s ability to enroll international students
- Kristi Noem: ‘This administration is holding Harvard accountable for fostering violence, antisemitism, and coordinating with the Chinese Communist Party on its campus’
- Harvard: ‘We are fully committed to maintaining Harvard’s ability to host international students and scholars, who hail from more than 140 countries and enrich the University’
US President Donald Trump’s administration has revoked Harvard University’s ability to enroll international students, and will force existing students to transfer to other schools or lose their legal status, the Department of Homeland Security said on Thursday.
Homeland Security Secretary Kristi Noem ordered the department to terminate Harvard University’s Student and Exchange Visitor Program (SEVP) certification, the department said in a statement.
Harvard called the action illegal.
The move comes after Harvard refused to provide information Noem had previously demanded about some foreign student visa holders who attend the university, the department said.
“This administration is holding Harvard accountable for fostering violence, antisemitism, and coordinating with the Chinese Communist Party on its campus,” Noem said.
“It is a privilege, not a right, for universities to enroll foreign students and benefit from their higher tuition payments to help pad their multibillion-dollar endowments.”
Harvard said the move a retaliatory action that threatens serious harm to the university.
“The government’s action is unlawful. We are fully committed to maintaining Harvard’s ability to host international students and scholars, who hail from more than 140 countries and enrich the University – and this nation – immeasurably,” the university said in a statement.
The White House did not immediately respond to requests for comment.
The move marks a significant escalation of the Trump administration’s campaign against the elite Ivy League university in Cambridge, Massachusetts, which has emerged as one of Trump’s most prominent institutional targets.
The Republican president has undertaken an extraordinary effort to revamp private colleges and schools across the US that he says foster anti-American, Marxist and “radical left” ideologies.
He has criticized Harvard in particular for hiring prominent Democrats to teaching or leadership positions.
