The Guardian reported this morning that:
A Boeing jet intended for a Chinese airline landed back at the planemaker's US production hub on Sunday, a victim of the tit-for-tat bilateral tariffs launched by Donald Trump.
The 737 MAX, which was meant for China's Xiamen Airlines, landed at Seattle's Boeing Field at 6.11pm, according to a Reuters witness. It was painted with Xiamen livery.
Rather than have its airlines pay 125% tariffs on pasts and parts from the USA, China is ordering that they stop importing.
How they have the contractual right to return a plane they had ordered, I do not know. But when you are talking about purchases of this order, you can afford to argue.
And that is not the real point. The real point is a simple one: it is that, as with everything else Trump is doing, the net cost of this is being borne by the American worker who voted him in. Twenty per cent of the world market for jest is in China. Boeing is no longer in it. That is going to hit it and its workforce hard. So much for Making America Great Again.
The supporters of Farage here really do need to take note.
Thanks for reading this post.
You can share this post on social media of your choice by clicking these icons:
There are links to this blog's glossary in the above post that explain technical terms used in it. Follow them for more explanations.
You can subscribe to this blog's daily email here.
And if you would like to support this blog you can, here:
Buy me a coffee!
I was intrigued by this. Could the Chinese turn down delivery under their contract with Boeing? I don’t know.
Many contracts contain a “force majeure” clause that says if something really big happens then “the deal is off”. Whether tariffs would allow this clause to be invoked I don’t know… but it seems unlikely.
What does seems to be the case is that China is sending a very public message to both America AND its own people.
Business requires trust…. whatever the contract says; this has gone.
I think you’ll find China does not care about the contract any more: this is politics.
Of course it is politics…. and $55mm (cost of the plane) is neither here nor there and the emblematic picture of a plane flying all the way across the Pacific only to be turned back is fantastic theatre that.
But details might well matter more broadly for trade and contracts. Are tariffs grounds for “Force Majeure”? Are Chinese or American companies reneging on contracts? Etc.
That will be decided by a court, five years hence.
I agree Richard.
And good luck taking the Chinese Government to court anyway. They’ve just out-trumped Trump and, on this occasion, I take my hat off to them.
Trump tore up agreements with every country when he unilaterally imposed or raised tariffs.
This will have political ramifications here in Northern Ireland. One of its biggest employers is Spirit Aerosystems (most recent US engineer buyer of Shorts/ Bombardier). Their largest parts contractor is Boeing. The pro MAGA DUP will have to find even better distraction than attacking Irish language signage in Belfast’s new train station to keep their hardcore voters on side if Trump’s global tariff war shuts it down.
I liked that signage when I saw it. Maybe that says something about me. It also recognised the reality of the whole of Ireland.
Maybe Trump has unwittingly helped us all by highlighting our very own political snake oil salesmen who support the MAGA menace.
There’s something deeply tragic about watching a country shoot itself in the foot and call it patriotism. A plane meant to fly across the world is now doing circles back to Seattle — and somehow, it feels like a perfect metaphor for this whole brand of flag-waving economic self-sabotage.
I can just picture that 737 MAX touching down, all dressed up in Xiamen livery like it’s turned up to a party that got cancelled last minute. And the workers who built it — engineers, machinists, logistics staff — they’re the ones left holding the bag. Not the suits who made the policy decisions. Not the think tanks spinning slogans about “sovereignty” and “greatness.” Just ordinary people, clocking out with fewer hours and less hope.
And it’s not just Boeing, is it? It’s steel, cars, agriculture, semiconductors — whole industries destabilised under the illusion that economic borders can protect you from a world that’s been global for decades. It’s like watching someone try to win a chess match by flipping the board over and shouting about independence.
And yes, as the blog says, we should absolutely be paying attention in the UK. Because we’ve got our own crop of political salesmen trying to flog the same fantasy. Wrap it up in a Union Jack, toss around some buzzwords, and pretend like it’s a strategy instead of a tantrum.
Meanwhile, jobs disappear. Investments dry up. Planes don’t fly.
Economic nationalism sounds great until you realise it doesn’t just keep others out — it locks you in.
Much to agree with
Yes, agree RM that is how it needs to be framed as MAGA power base is likely over-represented by authoritarians, (30% of the population)
The sooner Trump becomes the normative threat to American life, the better, and this applies to Farage too, in respect of UK.
‘I’ve consistently found that personal threats have the opposite effect on authoritarians to collective threats. Whereas perception of national economic decline increases the impact of authoritarianism on intolerance, individual financial stress actually has the opposite effect, de-activating authoritarianism and minimising its intolerant ‘returns’. (Stenner, 2020)
But it may be a risk Trump feels he can take – as he will frame it as a collective threat to activate authoritarians – China is harming America, China is the reason for our decline.
‘Trump has seemingly mastered the art of creating those normative threats guaranteed to rile up the authoritarians and bond them to him, as the (supposed) strongman leader who vows to save them from the “dark” people, the deviants and the dissidents.’ (Stenner, 2020)
Authoritarians will also likely be on board with his ‘rocky ride’ narrative too, which is why he has been referencing this, as this fits their means to end attitude, endure the chaos if the strongarm leader will give us back our normative order, we’ll cut him the slack he needs, whilst he makes America Great Again.
Maybe the wealthy elites will be the white knuckle riders, holding on tight for the rewards of the pending Trump Gilead contracts?
Trump – being the bully he is – has opened up and punched first.
This lashing out also makes you vulnerable and here is the response from a savvy and strong opponent – a stab into the rib cage under arm.
I would say adding 125% on top is big increase on the original principle. If that was my contract I’d being saying something about it and also having second thoughts with a view to parting company, with a fair price negotiated for taking off the intended owning branding and available for re-sale elsewhere.
Maybe China is proving to the world that “Big Government” or a Government that can at least dictate how private enterprise may conduct its affairs within its sphere of influence is effective.
And you don’t need to adopt China’s political beliefs to make that happen – just have some principals yourself and follow them.
That would of course require politicians with beliefs, principals, courage, and ability. I hope current events will produce such people otherwise we are screwed.
The main competitor to Boeing is Airbus. The wings for Airbus’s are still made in Wharton near Chester (btw). My guess is that the Chinese will buy European. I think we should be writing letters to the UK’s US ambassador thanking him for Pres Mango-man’s actions. Reeves talks about “growth”, well Mango-man has delivered it. Well done that man.
& the Boeing jet? I predict that it will be re-painted in Aeroflot colours given the love-affair Mango-Putler.
🙂
And agreed re where the market goes
When the wind is in the East, Tis neither fit for man nor beast.
But that’s when we see the Belugas flying in to Chester to pick up Airbus wings. I was incredibly happy to manage to capture a photo – on April 1st no less! 😀
https://www.flickr.com/photos/liverpool-leftovers/54423959735/in/datetaken/
I love seeing these planes – they look as if they’re smiling! 🙂
Such weird looking things.
But better than the USAF stuff I have flying over me.
There is a (longer term) alternative to Airbus. China has aspirations to become a 3rd supplier.
When banned from Android it didn’t take long for Huawei to release their alternative mobile operating system…..
Owing to production delays Boeing had a large back order for these types of planes – so they can probably re-sell this aircraft (re-livery, and re-configuration aside). But a statement from China stimulating their own capability will add another medium term challenge to Boeing ….
This bully-boy stuff is being called out…….
“Broughton” near Chester (actually it in Wales). Warton in Lancashire is where BAE systems is.
Thank you for the correction. 🙂
“Twenty per cent of the world market for jest is in China.”
I don’t doubt it, but I very much do doubt that they’re laughing tonight in the streets of Seattle . . .
Oops…