A Boeing 737 MAX jet has landed back on American soil amid Government feud between China and USA following Trumps “liberation day” tariffs. The Chinese Government has paused future American aircraft deliveries as of last week.
The Boeing 737 Max lands in Seattle still displaying Xiamen Airlines colours
One of Boeing’s best selling models sits in wait at the Zhoushan production hub, one of several that have been delayed in delivery. The jet landed at 6:11pm (BST) on April 20th following a refuelling stop in Guam and Hawaii on its 5,000 mile journey. According to a witness at Reuter’s the jet was still painted in the Xiamen colours. IBA reported the 737 MAX was an estimated $55m but as tariffs soar airlines are reconsidering their deliveries.
The Jet Returns Amid Trump Administration’s Rising Tariffs
Last week the Chinese Government ordered Chinese Airlines to pause the deliveries of American aircrafts and equipment following Trump raising the baseline tariff to 145%. In retaliation China also raised their tariffs to 125%. China holds and estimated 20% of the global demand for aircrafts over the next two decades with 130 planes scheduled for delivery from Boeing. However, neither Boeing nor Xiamen have not commented on which party decided to return the aircraft.
How Do These Tariffs Affect the Future of American Aircrafts
Moments before the announcement of Trump’s “liberation day” tariffs, Boeing chief executive Kelly Ortberg spoke to the US Senate of their aims to avoid ‘certain markets being closed to us’. As 80% of Boeing aircrafts are sold overseas the implemented tariffs leaves the company in a tight spot. Some airlines have reported that they would rather delay deliveries than pay the heavy duties. Ryanair chief executive is also suspending deliveries in hopes that “common sense will prevail”
However, the delivery delays provide new opportunity for Malaysian Airlines who are in discussion of obtaining The Boeing 737 MAX should the Chinese airline decline delivery. This move works towards their gold of modernisation and aids their post-pandemic supply chain issues. Malaysian Aviation Group (MAG) plans to operate 55 new-generation 737 MAX aircraft’s by 2030, with existing commitments to 30 and an option for 30 more.
