Boeing has reportedly flown a brand-new 737 MAX 8 aircraft originally destined for a Chinese airline back to the United States, following rising tensions in the trade war between the world’s two largest economies. The move comes shortly after the Chinese government instructed its airlines not to take delivery of Boeing aircraft amid retaliatory tariffs imposed by both nations.

Trade war disrupts Boeing deliveries

In March 2025, just weeks before the Trump administration announced steep tariffs on Chinese goods, Boeing had flown three new 737 MAX aircraft from Seattle to Zhoushan, signalling optimism that business would proceed as usual. However, the return of one of several jets awaiting final delivery to Chinese operators at the Zhoushan final assembly line underscores the growing disruption in aircraft deliveries.

Flight tracking data from Flightradar24.com shows that the first 737 MAX 8, painted in Xiamen Air livery, recently departed Boeing’s Zhoushan completion centre in China, heading to Guam as part of its return journey across the Pacific. Just a month earlier, the same aircraft had flown from Seattle to Zhoushan, with refuelling stops in Hawaii and Guam, according to a Reuters report.

According to ch-aviation data, Xiamen Air currently operates a fleet of 22 Boeing 737 MAX 8 narrow bodies, with an average age of five years. The carrier is also awaiting seven additional 737 MAX 8 deliveries from Boeing. However, due to the escalating tariff war, it is unlikely these deliveries will proceed as planned.

Escalating tariffs impact aviation industry

Earlier this month, US President Donald Trump increased baseline tariffs on Chinese imports to 145%. In response, China retaliated with a 125% tariff on US goods. For Chinese airlines, taking delivery of a Boeing jet under these conditions could be financially crippling. A new 737 MAX is valued at approximately $55 million, and the added tariffs could significantly inflate costs, making such purchases unfeasible.

In an exclusive report by Bloomberg on April 15, 2025, citing sources familiar with the matter, the Chinese government reportedly instructed its airlines to halt Boeing deliveries amid the ongoing trade war. This directive came after China imposed its own heightened tariffs on US-made goods.

The National Development and Reform Commission (NDRC), which oversees airlines’ ability to take delivery of new aircraft in China, confirmed that the retaliatory tariffs would "significantly raise" the cost of Boeing aircraft for Chinese carriers, according to a report by the state-run Yicai Global on April 8, 2025.

Impact on Boeing and opportunities for competitors

The escalating tariff war could leave many Boeing aircraft deliveries in limbo, further impacting sales of its best-selling 737 MAX model. According to Boeing’s orders and deliveries site, the company has 6,319 unfilled gross orders, with Chinese airlines accounting for a backlog of 130 aircraft, or roughly 2% of the total.

This disruption opens doors for competitors like Airbus and China’s domestic manufacturer, COMAC, to strengthen their foothold in the Chinese market. In the short term, Chinese airlines may opt to lease aircraft rather than purchase them outright. Over the long term, they could shift their purchasing strategies toward Airbus or prioritise domestically produced aircraft like the COMAC C919, a direct rival to the 737 MAX.

China’s push for domestic aviation

State-run publications like Yicai Global have noted that the tariffs could create new opportunities for China’s C919 narrow body, which is now being delivered to and operated by major Chinese carriers such as Air China, China Eastern, and China Southern. China is heavily investing in its efforts to develop a robust domestic aviation industry.

However, the COMAC C919 remains deeply reliant on US and European components, including engines, avionics, flight control systems, and other critical systems. With limited indigenous technology, Chinese airlines may still lean toward Airbus as a more viable alternative to Boeing in the near term.