Boeing 737 Max Returns to Seattle, Facing $55M Price Hike Due to US-China Tariffs

A Boeing 737 Max, initially intended for China’s Xiamen Airlines, has returned to the company’s production hub in Seattle, still bearing the airline's livery. The jet's return, a casualty of escalating US-China trade tensions, highlights the impact of the bilateral tariffs imposed by former President Donald Trump.

The 737 Max, which made refueling stops in Guam and Hawaii during its 5,000-mile journey, had been waiting at Boeing’s Zhoushan completion center in China for final work and delivery. However, as a result of the trade dispute, tariffs on Chinese imports were raised to 145% by the US, while China retaliated with a 125% tariff on US goods.

This trade war has severely impacted the delivery of Boeing jets to Chinese airlines, as the market value of a new 737 Max is approximately $55 million. The added tariffs could cripple airlines, making it financially unfeasible to take delivery of these planes. Reports suggest China is exploring ways to help airlines that lease Boeing jets cope with the increased costs.

Additionally, China’s government has reportedly instructed local airlines to halt purchases of aircraft-related equipment and parts from American companies like Boeing. As one of the largest consumers of aircraft, accounting for about 20% of global demand over the next two decades, China's actions could further strain the aviation market.