A Boeing 737 MAX intended for Xiamen Airlines returned to the US due to heightened trade tensions between the US and China. This disruption follows increased tariffs affecting Chinese airlines receiving Boeing jets. The return signifies a breakdown in the aerospace industry’s duty-free status, impacting aircraft deliveries. The 737 MAX, painted with Xiamen livery, landed at Seattle’s Boeing Field after refueling stops in Guam and Hawaii. It was one of several jets awaiting final work and delivery at Boeing’s Zhoushan completion center. Trump recently raised tariffs on Chinese imports to 145%, prompting China to impose a 125% tariff on US goods. A new 737 MAX has a market value of around $55 million, making tariffs burdensome for Chinese airlines. It remains unclear which party decided to return the aircraft to the US. Boeing and Xiamen did not immediately respond to inquiries. The return of the 737 MAX highlights disruptions in new aircraft deliveries due to the breakdown of the aerospace industry’s long-standing duty-free status. This tariff war could leave many aircraft deliveries in limbo, with some airlines deferring deliveries to avoid paying duties.
— new from The Economic Times
