China Sends Back Boeing’s $55M Jet to the US Amid Escalating Trade Tensions

A newly manufactured Boeing 737 MAX jet intended for China’s Xiamen Airlines was returned to the United States over the weekend, signaling a new low in the ongoing trade dispute between Washington and Beijing. The aircraft, valued at approximately $55 million, landed at Boeing Field in Seattle at 6:11 p.m. local time on Saturday, following a trans-Pacific journey with refueling stops in Guam and Hawaii.

The jet had been stationed at Boeing’s Zhoushan completion center in China, awaiting final inspections and delivery. However, the handover process was abruptly halted due to newly imposed tariffs that made the deal financially unviable.

Earlier in the month, the United States raised its baseline tariffs on a range of Chinese imports to a staggering 145%, in a bid to counter ongoing trade imbalances and concerns over intellectual property. In response, China implemented its own set of retaliatory measures, including a 125% duty on various American products—commercial aircraft among them.

As a result of these punitive tariffs, the final cost of the Boeing 737 MAX would have more than doubled for the Chinese buyer, bringing its effective price well above $110 million. The massive increase rendered the deal impractical, prompting the return of the aircraft.

This development not only highlights the immediate impact of tit-for-tat trade measures but also casts a shadow over Boeing’s future sales prospects in China—one of its most critical markets. China has historically been one of the largest buyers of Boeing aircraft, but escalating tariffs could push Chinese airlines to consider alternative manufacturers such as Europe’s Airbus.

The move reflects the deepening strain in U.S.-China relations and raises concerns over broader implications for the global aviation industry, already grappling with supply chain disruptions and regulatory challenges.