China sends Boeing’s $55M jet back to US threatening future sales

A brand‑new Boeing 737 MAX to be used for Xiamen Airlines flew back to Seattle on Saturday. This happened after trade tariffs were announced for China, underscoring the deepening clash between Washington and Beijing.

The single‑aisle jet landed at Boeing Field at 6:11 p.m. after a 5,000‑mile journey that included refueling stops in Guam and Hawaii. CNN reported that it had been waiting at Boeing’s Zhoushan completion center for final checks before handover, but rising duties turned the handover into a financial dead end.

Earlier this month, the United States increased baseline tariffs on Chinese imports to 145%. China retaliated with 125% duties on American goods. At a market value near $55 million, a new 737 MAX would cost a Chinese buyer well over twice that figure once the extra charges were added.

The abrupt return is the clearest sign yet that commercial aircraft’s long‑standing duty‑free status has been disrupted. Boeing had only just resumed preparing 737 MAX deliveries to China after an almost five‑year freeze linked to safety reviews and a previous round of trade friction.

The tariffs have impacted the market on Tuesday after Bloomberg reported that Chinese authorities told domestic carriers to halt all Boeing deliveries. The news sent Boeing shares, a Dow component, down about 1% by midday.

The White House and Boeing stayed silent, but President Donald Trump wrote on social media that China “just reneged on the big Boeing deal, saying that they will ‘not take possession’ of fully committed to aircraft.”

Airline chiefs and industry analysts warn that aircraft deliveries will stay uncertain due to shifting tariffs. Some carriers say they would rather defer deliveries than pay tariffs.

Boeing’s China business is at risk amidst the company’s losses

The 737 MAX is Boeing’s best‑selling model and a vital revenue source. Yet the company has been fighting strong headwinds. The company has lost $51 billion in operating losses since 2018, the last year it shared annual profit.

China is the world’s largest buyer of passenger jets. In its latest long‑term forecast, Boeing estimated that Chinese airlines will need 8,830 new planes over the next 20 years. With a 125% import duty in place, any U.S.‑built aircraft is out of reach financially.

Boeing still builds every commercial plane in the United States and ships almost two‑thirds of them abroad. The company employs about 150,000 people and supports an estimated 1.6 million U.S. jobs, contributing roughly $79 billion to the American economy each year.

Several other 737 MAX jets with Chinese branding remain at Zhoushan.

Trade specialists say the dispute could still be settled by negotiation, but every day of doubt adds to airlines’ and manufacturers’ expenses. Flying an empty jet halfway around the world, only to park it again, cuts deep into already thin margins for an industry still recovering from pandemic losses.

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