Boeing Jet Returns to US from China Amid Tariff War
Disruption to deliveries due to breakdown in duty-free status and escalating trade tensions between US and China
A Boeing jet has returned to the US from China, indicating a disruption to deliveries due to the ongoing tariff war.
The plane, which was initially flown to Zhoushan for final work and handover to a Chinese carrier, took off again without being delivered and flew back to the US territory of Guam before heading to Seattle.
This move comes as Boeing's business in China is under scrutiny over the tariff dispute, with reports suggesting that Beijing may impose a ban on imports of US-made aircraft.
The planemaker has been recovering from an almost five-year import freeze on 737 MAX jets and previous trade tensions.
The return flight was made despite discussions over leaving undelivered jets in bonded storage, which would not be officially imported or tariffed.
Boeing has declined to comment on the matter.
The company had previously sent a quarter of its deliveries to China, but this has been falling due to earlier tensions, a 737 MAX safety crisis, and the impact of the Covid-19 pandemic.
There are currently 130 unfilled orders for China-based airlines and lessors, with industry sources suggesting that a significant portion of the more than 760 unfilled orders for which Boeing has yet to name a buyer are destined for China.
The tariff war and apparent U-turn over deliveries have left many aircraft deliveries in limbo, with some airline CEOs saying they would defer delivery of planes rather than pay duties.
The plane, which was initially flown to Zhoushan for final work and handover to a Chinese carrier, took off again without being delivered and flew back to the US territory of Guam before heading to Seattle.
This move comes as Boeing's business in China is under scrutiny over the tariff dispute, with reports suggesting that Beijing may impose a ban on imports of US-made aircraft.
The planemaker has been recovering from an almost five-year import freeze on 737 MAX jets and previous trade tensions.
The return flight was made despite discussions over leaving undelivered jets in bonded storage, which would not be officially imported or tariffed.
Boeing has declined to comment on the matter.
The company had previously sent a quarter of its deliveries to China, but this has been falling due to earlier tensions, a 737 MAX safety crisis, and the impact of the Covid-19 pandemic.
There are currently 130 unfilled orders for China-based airlines and lessors, with industry sources suggesting that a significant portion of the more than 760 unfilled orders for which Boeing has yet to name a buyer are destined for China.
The tariff war and apparent U-turn over deliveries have left many aircraft deliveries in limbo, with some airline CEOs saying they would defer delivery of planes rather than pay duties.