In a surprise return to the United States, a Boeing 737 MAX jet originally destined for Chinese airline Xiamen Airlines has returned back to the U.S. It touched down at Boeing’s production headquarters in Seattle. This surprising twist in the saga highlights the very real economic conflict that is brewing between the US and China. The recent tariff escalations that former President Donald Trump started have only made matters worse.
The aircraft, which was painted with Xiamen Airlines’ livery, began its return journey after the Chinese government imposed a staggering 125% tariff on U.S. goods as part of a retaliatory measure against Trump’s administration. The tariff raise render American-made planes cost-prohibitive for many Chinese airline companies. Xiamen Airlines, specifically, had been looking forward to taking delivery of the new plane.
The 737 MAX jet embarked on a nearly 8,000-kilometer roundtrip journey. On its 5,000-mile segmented journey, it refueled in Guam and Hawaii along its route. One of the 737 MAX jets is now in Boeing’s Zhoushan completion center. It is currently awaiting delivery because of the stormy trade relations. Of the 737 family, the 737 MAX is Boeing’s best seller. Recent geopolitical developments have added serious headwinds to its continued sales success in China.
As the situation unfolded, it remained unclear which party made the decision for the aircraft to return to the U.S. Boeing and Xiamen Airlines did not immediately respond to Reuters inquiries before publication. Because of this, countless questions are left hanging about the fate of this jet and others like them in the coming years.
The return of the jet coincides with Trump’s recent announcement that he raised baseline tariffs on Chinese imports to 145%. These kind of actions have made future trade talks more difficult and have created long-term harm across many industries—including aviation. The current list market value of a new 737 MAX is about $55 million. Yet, that number seems like an even steeper hill to climb given the current tariff landscape.
The impact of these tariffs goes well beyond an arbitrary single aircraft delivery. Their effects serve as a loud signal that the world of international trade relationships is changing. The effects on U.S. manufacturers such as Boeing could be deep as they continue to fight these economic headwinds.