A Boeing 737 MAX, intended for China's Xiamen Airlines, returned to Seattle due to the damaging effects of the ongoing US-China trade war. Heightened tariffs, with the US imposing a 145% tax on Chinese imports and China retaliating with a 125% tax on US goods, significantly affect the commercial aviation market. This particular aircraft was one of several awaiting final delivery procedures in China but faced an uncertain future due to tariffs. This situation illustrates the breakdown of the aerospace industry's traditional duty-free status, complicating aircraft deliveries and leading to potential delays and cancellations by airlines.
A Boeing jet intended for use by a Chinese airline landed back at the planemaker's US production hub on Saturday, a victim of the tit-for-tat bilateral tariffs.
Trump this month raised baseline tariffs on Chinese imports to 145%. In retaliation, China has imposed a 125% tariff on US goods.
The return of the 737 MAX is the latest sign of disruption to new aircraft deliveries from a breakdown in the aerospace industry's decades-old duty-free status.
Confusion over changing tariffs could leave many aircraft deliveries in limbo, with some airline CEOs saying they would defer delivery of planes rather than pay duties.
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