China Returns $55M Boeing Jet Amid Rising U.S.-China Trade Tensions
In a sharp escalation of trade tensions, China has returned a brand-new Boeing 737 MAX jet to the U.S., dealing a blow to Boeing and underscoring the deepening rift between Washington and Beijing. The $55 million aircraft, intended for China’s Xiamen Airlines, landed in Seattle after being flown back from Boeing’s Zhoushan completion center, where it had been awaiting final delivery.
The reversal came after the U.S. imposed steep tariffs—up to 145%—on a range of Chinese imports. China swiftly responded with a 125% tariff on several U.S. goods, including commercial aircraft. These tariffs more than doubled the jet's cost, making the deal financially unviable.
The return of the aircraft not only signals deteriorating trade relations but also threatens Boeing’s foothold in the critical Chinese market. With tensions rising, Chinese airlines may increasingly turn to Airbus as an alternative, potentially reshaping the global aviation landscape already strained by supply chain issues and regulatory hurdles.
