MercoPress. South Atlantic News Agency

Boeing aircraft bound for Chinese carrier returned to manufacturer

Boeing aircraft bound for Chinese carrier returned to manufacturer

A brand-new Boeing 737 MAX intended for China's Xiamen Airlines was returned to the aircraft manufacturer due to escalating trade tensions driven by US President Donald Trump's tariff war. Trump raised tariffs on Chinese imports to 145%, prompting China to impose 125% tariffs on U.S. goods, making delivery of these aircraft financially unviable for Chinese airlines.

The plane, one of several at Boeing’s Zhoushan facility, landed in Seattle after stops in Guam and Hawaii. The aircraft was built in Renton, Washington, and shipped to Zhoushan, China, where it was assembled and ready for delivery. China has directed its airlines to halt deliveries of US-made aircraft and components, leaving other 737 MAX jets in limbo. Boeing is now targeting emerging markets like India, the UAE, and Latin America for new buyers.

A Chinese airline taking delivery of a Boeing aircraft could be crippled by the tariffs, given that a new 737 MAX has a market value of about US$ 55 million, according to aviation consultants IBA.

The tariff war and apparent U-turn on deliveries come as Boeing has been recovering from a nearly five-year import freeze on 737 MAX jets and a previous round of trade tensions.

Confusion over the tariff change could leave many aircraft deliveries in limbo, with some airline CEOs preferring to postpone deliveries rather than pay duties.

At least two other Boeing 737 MAX aircraft, also destined for Chinese airlines, remain in Zhoushan awaiting resolution.