5,000-mile return: China sends $55M Boeing jet back to US, calls it ‘too expensive’ under Trump tariffs
Written By Prapti Upadhayay
Published: Apr 21, 2025, 04:45 IST | Updated: Apr 21, 2025, 04:45 IST
Story highlights
World: The plane had been waiting at Boeing’s Zhoushan centre in China for final work and delivery. Instead, it made the long 5,000-mile journey back to the US, stopping to refuel in Guam and Hawaii.
A Boeing 737 MAX originally meant for China’s Xiamen Airlines flew back to the United States on Sunday, highlighting the growing impact of U.S.-China trade tensions. The aircraft, clearly marked with Xiamen livery, touched down at Boeing Field in Seattle at 6:11 pm.
The plane had been waiting at Boeing’s Zhoushan centre in China for final work and delivery. Instead, it made the long 5,000-mile journey back to the US, stopping to refuel in Guam and Hawaii.
This reversal follows new tariff hikes. President Donald Trump recently raised US tariffs on Chinese imports to 145%, while China responded with a 125% tariff on US goods. That means any Chinese airline receiving a US-made jet like the 737 MAX, valued at around $55 million, would now face a huge cost increase.
The 737 MAX is Boeing’s best-selling model. Its return to the US is the latest sign of how the aerospace industry’s long-standing duty-free status is falling apart.
With confusion growing over tariffs, several airline CEOs have hinted that they may delay taking deliveries to avoid the added expense. Analysts believe many deliveries could now be put on hold.
Just last week, Boeing shares dropped after a report claimed China suspended all Boeing deliveries. Following Bloomberg’s report, Boeing’s stock dipped 1% by midday.
Boeing is particularly exposed in global trade rows. Unlike some other companies, it builds all its planes in US factories but exports nearly two-thirds of them. Boeing also plays a major role in the American economy, supporting about 1.6 million jobs and contributing an estimated $79 billion. The company employs nearly 150,000 people in the US alone.
Boeing has been in a rough spot for years. Since 2018, its last profitable year, the planemaker has recorded $51 billion in operating losses. China, the world’s largest aircraft market, is key to Boeing’s future, with 8,830 new planes expected to be ordered there over the next 20 years.
Yet Boeing’s orders from China have dried up. It received 122 plane orders from Chinese customers in 2017 and 2018. But in the six years since, it has logged just 28, mainly from leasing firms or for cargo use. No recent orders have come from Chinese passenger airlines.
Trade friction isn’t the only reason for Boeing’s problems in China. The 737 MAX was grounded globally after two deadly crashes in 2018 and 2019. Deliveries nearly stopped entirely after the second crash, and even when most countries cleared the aircraft in 2020, China held off. It was only last year that deliveries to China began to pick up again.
Boeing’s business model relies heavily on completed deliveries, that’s when most payments are made. At the end of 2024, the company had 55 planes sitting in inventory, mainly for Chinese and Indian customers, but couldn't hand them over.