Boeing 737 MAX Deliveries To China Restart After Month-Long Pause Amid Trade Tensions With US Over Trump's Tariffs

A Boeing Co. BA 737 MAX 8 landed at the company’s Zhoushan completion center near Shanghai on Monday, signaling the resumption of deliveries to Chinese airlines after a month-long pause triggered by rising trade tensions.

What Happened: Flight tracking data from Flightradar24 showed the Xiamen Airlines-liveried aircraft departed Seattle on Saturday, refueling in Hawaii and Guam before arriving in China, according to a Reuters report.

The aircraft had previously been ferried to Zhoushan in March but returned to the U.S. in April when Chinese carriers stopped accepting new Boeing jets.

Boeing CEO Kelly Ortberg confirmed in a CNBC interview that several Boeing 737 MAX jets awaiting delivery in China were flown back to the U.S. due to escalating trade tensions. The halt followed President Donald Trump's move to raise tariffs on Chinese goods to 145%, prompting China to impose 125% tariffs on U.S.-made products, including aircraft.

Deliveries resumed after a 90-day tariff truce was brokered in Geneva, reducing most mutual tariffs to 10%. However, the U.S. retained 20% tariffs on Chinese fentanyl-linked imports, keeping effective tariff levels at 30%.

In addition, Beijing lifted all non-tariff retaliatory measures imposed since April 2, including sanctions on select U.S. firms and restrictions on key mineral exports. U.S. Treasury Secretary Scott Bessent called the negotiations "very productive," adding that "neither side wants a decoupling."

China analyst Jeremy Chan said President Xi Jinping “has bowed to reality,” recognizing that “there is no substitute for direct negotiations with Trump,” following a recent phone call between the leaders.

Why It Matters: China accounts for about 10% of Boeing's commercial aircraft backlog and is expected to generate 20% of global airplane demand over the next two decades. Roughly 50 Boeing jets are slated for delivery to Chinese carriers this year, saving the company from the costly task of finding alternate buyers.

In Q1 2025, Boeing's Commercial Airplanes revenue surged 75% year-over-year to $8.16 billion.

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