Boeing 737 MAX Returns to US as China Tariffs Halt Delivery

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Boeing 737 MAX Returns to US as China Tariffs Halt
A photo taken on October 26, 2024 shows a Fiji Airways Boeing 737 Max 8 taking off from Samoa's Faleolo International Airport near Apia. WILLIAM WEST/AFP via Getty Images/Getty Images

In a setback for Boeing, two 737 MAX jets intended for Chinese airlines have returned to the United States, as escalating trade tensions between the US and China disrupt aircraft deliveries.

The move follows the imposition of hefty tariffs by both nations, which have made it economically unfeasible for Chinese carriers to take delivery of the new aircraft.

The first jet, painted in the livery of China's Xiamen Airlines, landed at Boeing Field in Seattle on Saturday after making a 5,000-mile journey with refueling stops in Guam and Hawaii, Reuters said.

The plane had been waiting at Boeing's Zhoushan completion center in China for final work before delivery.

A second 737 MAX jet also returned to the US on Monday, following a similar route and landing in Guam before heading to Seattle.

These jets are part of several Boeing 737 MAX planes that were set to be delivered to Chinese airlines but are now stranded due to the US-China trade conflict. The decision to recall the planes remains unclear, with no official statement from either Boeing or Xiamen Airlines.

The root cause of the disruption lies in the tariffs imposed by both countries. President Donald Trump recently raised US tariffs on Chinese imports to 145%.

In response, China retaliated by imposing a 125% tariff on US goods, including aircraft. With the new tariffs, the cost of a single 737 MAX, valued at around $55 million, becomes prohibitive for Chinese airlines, rendering the delivery economically unviable.

Boeing's 737 MAX Delivery Plans to China Delayed by Rising US-China Tariffs

Boeing, which had previously shipped the planes to Zhoushan for customization, has not yet commented on the situation, Tribune said.

However, analysts are warning that this disruption could have a ripple effect across the aerospace industry. The uncertainty around tariffs has left many aircraft deliveries in limbo, with some airline CEOs considering deferring deliveries to avoid the additional duties.

"This situation is creating a lot of uncertainty in the global aerospace supply chain," said an industry analyst. "It's difficult for airlines to make decisions about deliveries when tariffs are constantly changing."

This latest setback for Boeing comes after the company has been working to recover from an almost five-year freeze on 737 MAX deliveries, following safety issues with the aircraft.

The company had hoped to regain momentum with deliveries to China, a key market, but the tariff war has now thrown a wrench in those plans.

Malaysian Airlines has expressed interest in acquiring the aircraft, potentially offering a short-term solution should Chinese carriers halt their orders.

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Boeing, China

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