Boeing jet returns to US from China a victim of Trump s tariff war

SEATTLE – A Boeing jet intended for use by a Chinese airline landed back at the planemaker’s US production hub on April 20, a victim of the tit-for-tat bilateral tariffs launched by US President Donald Trump in his global trade offensive.

The 737 Max, which was meant for China’s Xiamen Airlines, landed at Seattle’s Boeing Field painted with Xiamen livery, according to a Reuters witness.

The jet, which made refuelling stops in Guam and Hawaii on its 8,000km return journey, was one of several 737 Max jets waiting at Boeing’s Zhoushan completion centre for final work and delivery to a Chinese carrier.

Mr Trump raised baseline tariffs on Chinese imports to 145 per cent.

In retaliation, China has imposed a 125 per cent tariff on US goods.

A Chinese airline taking delivery of a Boeing jet could be crippled by the tariffs, given that a new 737 Max has a market value of around US$55 million (S$72 million),according to IBA, an aviation consultancy.

It is not clear which party made the decision for the aircraft to return to the US.

The return of the 737 Max, Boeing’s best-selling model, is the latest sign of disruption to new aircraft deliveries from a breakdown in the aerospace industry’s decades-old duty-free status.

The tariff war and apparent U-turn over deliveries come as Boeing has been recovering from China’s almost five-year import freeze on 737 Max jets and a previous round of trade tensions.

Confusion over changing tariffs could leave many aircraft deliveries in limbo, with some airline CEOs saying they would defer delivery of planes rather than pay duties, analysts say. REUTERS

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