China Rejects Boeing’s $55M Jet Amid Escalating Trade Tensions
A newly built Boeing 737 MAX, originally destined for China’s Xiamen Airlines, was unexpectedly flown back to the U.S. over the weekend, signaling growing strain in U.S.–China trade relations. The aircraft, valued at approximately $55 million, returned to Boeing Field in Seattle after a trans-Pacific journey with refueling stops in Guam and Hawaii. This return marks a direct consequence of newly imposed tariffs that have disrupted what was once a duty-free sector for international commercial aircraft sales.
The aircraft had been stationed at Boeing’s Zhoushan completion center awaiting delivery when the financial burden of rising import duties rendered the handover infeasible. Earlier this month, the U.S. raised tariffs on a range of Chinese imports to 145%, prompting China to counter with 125% levies on American products, including aircraft.
The incident has triggered alarm in the aviation industry, as Boeing was only recently ramping up 737 MAX deliveries to China after a prolonged pause tied to both safety concerns and prior trade tensions. The fallout was immediately felt in financial markets, with Boeing's stock dipping after reports surfaced that Chinese regulators had instructed local airlines to suspend all pending Boeing aircraft deliveries. Although neither the White House nor Boeing commented, former President Donald Trump weighed in online, alleging that China had “backed out” of previously agreed aircraft commitments.
With China representing the largest commercial aircraft market globally—and Boeing projecting demand for over 8,800 new jets from Chinese airlines over the next two decades—this breakdown could have long-term consequences. While experts believe that diplomacy could still bring a resolution, each delayed delivery adds cost and uncertainty for airlines and manufacturers alike.