In what might be the most expensive round-trip flight with no passengers, a brand-new Boeing 737 MAX originally headed for China’s Xiamen Airlines has made a surprise return to the U.S.—not because someone forgot their passport, but thanks to rising trade tensions between Washington and Beijing.
The plane had been waiting at Boeing’s Zhoushan completion center for final touch-ups and delivery, part of a group of 737 MAX aircraft caught in geopolitical crossfire. But this one got an all-expenses-paid journey back to its birthplace instead.
What’s behind the detour? Good old-fashioned tariff one-upmanship. Former President Donald Trump recently upped baseline tariffs on Chinese goods to 145% (presumably because 100% just didn’t feel bold enough), and China fired back with a 125% tax on U.S. imports. That kind of tit-for-tat makes it very expensive to give someone a plane.
With each new 737 MAX priced at around $55 million, Chinese airlines accepting delivery right now would basically be burning money for fun. Beijing is reportedly looking into how to cushion the blow for local airlines leasing U.S.-made jets, but for now, that plane is going nowhere fast—except back to Seattle.
As if that wasn’t enough turbulence, China has reportedly told its airlines to stop buying parts and equipment from American aerospace companies like Boeing. That’s awkward timing, considering China is projected to make up about 20% of the world’s aircraft demand in the next two decades. Talk about a customer you don’t want to lose.
Neither Boeing nor Xiamen Airlines has claimed responsibility for the decision to boomerang the aircraft back to the U.S., and both declined to comment—probably because they’re still shaking their heads in disbelief.
Just hours before Trump launched his “liberation day” tariffs, Boeing CEO Kelly Ortberg testified before the U.S. Senate, gently pointing out that 80% of the company’s planes are sold internationally and that it’d be great if the U.S. didn't accidentally slam the door on some of its best customers.
The tariff war and U-turn over deliveries comes as Boeing has been recovering from an almost five-year import freeze on 737 MAX jets. The suspension in China began in 2019 over safety concerns following two fatal crashes involving the plane model in Indonesia and Ethiopia.
Aircraft orders are now in limbo, like a plane stuck in a holding pattern. Analysts say some airline CEOs may delay accepting deliveries until the tariff storm passes. Ryanair’s always-candid chief Michael O’Leary told the Financial Times that his airline is due to receive 25 Boeing jets starting in August, but hinted at a delay, adding, “We might delay them and hope that common sense will prevail.”
Here’s hoping. Because when your $55 million aircraft starts doing laps around the Pacific with nowhere to land, it might be time to ask if the trade war has gone just a bit too far.
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