Boeing Repatriates MAX Caught In Tariff Tiff

Ferry flight landed Sunday at Boeing Field.

S5A-0048/Wikimedia/https://creativecommons.org/licenses/by/4.0/deed.en
Gemini Sparkle

Key Takeaways:

  • China has directed its airlines to cease taking delivery of Boeing aircraft, a measure enacted due to the ongoing U.S.-China trade war.
  • Boeing has started returning aircraft intended for Chinese carriers to the U.S., with a 737 MAX specifically recalled from a completion center in China to Seattle.
  • Uncertainty surrounds whether U.S. tariffs, which could significantly increase the cost of these planes, apply to the aircraft, and whether Boeing or Chinese authorities initiated their return.
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Boeing has started bringing aircraft sold to Chinese airlines back to the U.S. after China announced last week it had told airlines to stop taking delivery of Boeing products. The move was in response to a trade war sparked by President Donald Trump’s imposition of 145% tariffs on U.S. goods. It’s not clear whether the tariffs actually applied to the aircraft that landed in Seattle on Sunday, presumably to be stored until some kind of deal is reached to allow its delivery. If the tariffs did apply, the cost of the MAX would have been about $135 million rather than the normal $55 million sticker price.

The Boeing 737 MAX was at Boeing’s completion center in Zhoushan for final touches before entering service with Xiamen Airlines. It was spotted landing at Boeing Field just after 6 a.m. after fuel stops in Guam and Hawaii. Reuters said it’s not known whether Boeing recalled the plane or the Chinese ordered it to leave.

Russ Niles

Russ Niles is Editor-in-Chief of AVweb. He has been a pilot for 30 years and joined AVweb 22 years ago. He and his wife Marni live in southern British Columbia where they also operate a small winery.
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