A second Boeing jet meant for a Chinese airline is on its way back to the US on Monday, according to flight tracking data, reported Reuters. A Boeing 737 MAX intended for Xiamen Airlines in China made an unexpected return to the US on Sunday, landing at Boeing Field in Seattle.
The jet was one of several 737 MAX aircraft that had been waiting at Boeing’s Zhoushan completion centre in China for final work and delivery, reported The Guardian. However, the trade war between the US and China, triggered by us president Donald Trump’s decision to raise tariffs on Chinese imports, has now disrupted this plan.
As of this month, Trump has increased tariffs on Chinese goods to 145%, prompting China to retaliate with its own 125% tariffs on US-made products, including aircraft. The imposition of these tariffs presents a significant problem for Chinese airlines, as the 737 MAX, Boeing’s bestselling model, has a market value of approximately $55 million. The tariffs could make it financially unfeasible for Chinese airlines to take delivery of these jets.Beijing is reportedly considering measures to support its airlines, particularly those leasing Boeing jets, to mitigate the increased costs.
The confusion surrounding the changing tariffs has left many aircraft deliveries in limbo, with some airline executives indicating they may delay aircraft deliveries rather than incur the extra costs. The situation is also having a broader impact on Boeing, which has a substantial order backlog, including around 130 jets for Chinese customers, according to reports. Analysts warn that the uncertainty over the tariffs could disrupt not only Boeing’s delivery schedules but also the entire aircraft manufacturing sector, which relies heavily on international sales.
At a US Senate hearing earlier this month, Boeing’s CEO Kelly Ortberg had expressed concerns about the possibility of certain markets closing off to the company due to these tariff battles. While the details of which party decided to return the jet to the US remain unclear, it highlights the significant impact the ongoing trade war is having on the aviation industry.
