WASHINGTON/SEATTLE (Reuters) -U.S. planemaker Boeing ( BA ) lost its way and also lost the trust of the American people after a January 2024 mid-air emergency involving a new Boeing 737 MAX and two fatal crashes in 2018 and 2019, Transportation Secretary Sean Duffy said Friday.

Duffy also said the Federal Aviation Administration is not yet ready to lift a 38-plane per month production cap on the 737 MAX.

"When you breach the trust of the American people with that safety and with your manufacturing, we're going to put the screws to you to make sure you change your ways and start doing things right," Duffy told Fox News Channel's The Faulkner Focus after a visit on Thursday to the Boeing 737 factory in Renton, Washington. "They've lost trust."

Duffy traveled to Washington and met with Boeing ( BA ) CEO Kelly Ortberg, along with acting FAA Administrator Chris Rocheleau, following last year's mid-air panel blowout on a new Alaska Airlines 737 MAX 9 airplane that was missing four key bolts. Ortberg will testify April 2 before Congress.

Boeing ( BA ) said it was pleased to show Duffy and Rocheleau "the progress we're making to further strengthen safety and quality. Our team continues to work on improving our culture and rebuilding trust."

Duffy said at a press conference Friday that Boeing's ( BA ) new leadership is making improvements.

"They get it and they are making the changes in manufacturing," he told reporters in Seattle. "I think they are making progress but they still need tough love."

Duffy announced the factory visit on the sixth anniversary of the crash of Ethiopian Airlines flight 302 that killed all 157 people on board and led to changes in the 737 MAX's design and pilot training.

Previously "everybody was punching Boeing ( BA ), they were angry and rightly so. I think we're in a space today where America is cheering them on," Duffy added.

In January 2024, former President Joe Biden's FAA Administrator Mike Whitaker imposed a 38-plane monthly production cap after the Alaska Airlines 737 MAX incident.

Duffy noted Boeing ( BA ) is not currently close to producing 38 MAX planes per month.

Once they make quality improvements "we have to take a risk on them," Duffy said and lift the cap, but "we're not there yet."

Duffy said President Donald Trump does not want USDOT to take risks with safety but "wants us to not be too restrictive. He wants us to be smart and loosen up the restrictions on production with Boeing ( BA ) when it's appropriate."

Boeing ( BA ) in July agreed to plead guilty to a criminal fraud conspiracy charge and pay at least $243.6 million after breaching a 2021 deferred prosecution agreement. The Justice Department said Boeing ( BA ) allowed potentially risky work at its factories and did not ensure key airplane record-keeping was accurate.

(Reporting by David Shepardson in Washington and Dan Catchpole in SeattleEditing by Marguerita Choy and David Gregorio)