A Boeing 737 MAX destined for Xiamen Airlines in China returned to Boeing's US production hub due to the high tariffs imposed during the US-China trade war.
The 145% US tariffs on Chinese imports and China's retaliatory 125% tariff on US goods made the delivery of the $55 million jet economically unviable.
It remains unclear who initiated the jet's return. The incident underscores the significant disruption to the aerospace industry's previously duty-free trade, with potential delays and cancellations of aircraft deliveries due to tariff uncertainty.
The situation further complicates Boeing's recovery from a prior 737 MAX import freeze and previous trade tensions. Airline CEOs are considering delaying deliveries to avoid paying hefty tariffs.