A Boeing 737 Max jet, once destined for Xiamen Air, has been returned to the manufacturer’s factory in Seattle, Washington, amid the escalating trade tensions between the US and China. The aircraft, already painted with the airline’s livery, traveled over 8,000 km, making two refueling stops along the way.
The move is seen as another retaliatory measure by China in response to the US imposing hefty tariffs on Chinese imports. The tariffs, introduced by former US President Donald Trump, hit Chinese goods with a 145% tax, prompting China to slap a 125% tariff on US imports, including Boeing aircraft.
The decision to return the aircraft has significant financial implications for Xiamen Air, as the 737 Max costs around $55 million. The airline now faces a substantial tax bill for accepting delivery of the plane.
Trade War Fallout
The aircraft was one of several Boeing 737 Max jets awaiting delivery to Chinese airlines at Boeing’s assembly plant in Zhongshan, China. However, with the imposition of tariffs, the deal became less attractive.
US media reported that the Chinese government had instructed domestic airlines to suspend deliveries of Boeing aircraft and refrain from purchasing US-made aircraft parts. While neither Boeing nor Xiamen Air has commented on the decision to return the aircraft, the move is seen as a clear indication of the trade war’s impact on the aviation industry.
The source of this information is Channel NewsAsia.