Boeing 737 MAX Returns from China Amid Rising Trade Tensions

A Boeing 737 MAX aircraft, originally destined for delivery to China’s Xiamen Airlines, has been returned to the United States from Zhoushan—an action seen as indicative of rising trade tensions between the United States and China.

In March, three 737 MAX aircraft were sent from Seattle to Zhoushan, where Boeing operates a facility for final assembly, including interior fittings and painting. However, after President Donald Trump imposed new tariffs on Apr. 2, the nearly finished aircraft became stuck as trade relations between the two nations deteriorated.

The movement of these planes between Boeing's facilities reflects the company's reassessment of its position in China, with executives signaling that they would delay deliveries of planes instead of paying the new duties.

Trump recently introduced reciprocal tariffs of up to 145% on Chinese goods, prompting China to retaliate with tariffs of up to 125%. Experts speaking to Reuters noted that China’s tariff policies could effectively block US aircraft imports, even without a formal ban.

This has disrupted Boeing’s delivery plans, as some airlines are reconsidering their leasing agreements, potentially leaving several aircraft in limbo. Bloomberg reports that Chinese authorities have instructed domestic airlines to stop exporting aircraft to the United States. These developments occur as Boeing is still recovering from a five-year import freeze and the effects of the COVID-19 pandemic.

The aerospace sector has traditionally been a duty-free framework, but as trade tensions rise, this norm is being challenged. According to CBS News, Boeing is still scheduled to deliver 10 additional jets to Chinese carriers, but these may also end up being sent back to the United States.