A minute Boeing aircraft meant for a Chinese flight is on its way up to the US on Monday, according to flight tracking information, reported Reuters. A Boeing 737 MAX intended for Xiamen Airlines in China made an unexpected returning to the US on Sunday, landing at Boeing Field in Seattle.
The plane was one of several 737 MAX airplane that had been waiting at Boeing’s Zhoushan implementation center in China for last work and distribution, reported The Guardian. However, the trade conflict between the US and China, triggered by us president Donald Trump’s decision to raise tariffs on Chinese imports, has now disrupted this program.
As of this month, Trump has increased tariffs on Chinese goods to 145 %, prompting China to retaliate with its own 125 % tariffs on US-made products, including aircraft. The implementation of these taxes presents a major issue for Chinese carriers, as the 737 MAX, Boeing’s bestselling type, has a market price of around$ 55 million. The tariffs may make it economically impossible for Chinese airlines to get distribution of these jets. Beijing is reportedly considering actions to support its carriers, especially those leasing Boeing planes, to lessen the increased expenses.
The uncertainty surrounding the shifting tariffs has left many plane deliveries in purgatory, with some flight executives indicating they may wait plane deliveries rather than face the additional costs. The condition is also having a broader effect on Boeing, which has a large purchase delay, including around 130 planes for Chinese consumers, according to reports. Analysts warn that the uncertainty over the tariffs may disrupt not just Boeing’s delivery schedules but also the whole aircraft manufacturing sector, which relies heavily on foreign sales.
At a US Senate hearing earlier this month, Boeing’s CEO Kelly Ortberg had expressed concerns about the possibility of certain markets closing off to the company due to these tariff battles. While the details of which party decided to return the jet to the US remain unclear, it highlights the significant impact the ongoing trade war is having on the aviation industry.
