Insights 
VT 
A Boeing 737 MAX arrived in China with ongoing improvement in US-China trade relations. Boeing had previously stopped deliveries to China in April due to heightened tensions.
In May, the company decided to restart deliveries in June after the US and China reduced tariffs temporarily. This pause in tariffs will last for 90 days, showcasing progress between the two countries.
Impact of Tariff Easing
This recent arrival signals more than just one aircraft crossing borders. With this Boeing 737 MAX landing in China, it confirms that the easing of tariffs between the US and China is having a material effect. When Boeing announced in May that deliveries could resume in June, it was predicated on this 90-day tariff truce. That suspension is already creating visible results, at least on the logistics front.
From our desk, this development implies a narrower spread in risk premiums for manufacturers with heavy exposure to cross-border trade, especially those in aerospace and defence. It takes uncertainty off the table in the short term, and for markets, that’s something to respond to directly. Prices already anticipated some relaxation, but confirmation through this delivery supports further short-term positioning.
What investors should understand is that this isn’t merely an isolated aircraft movement—it’s an indicator. Tariff downtime resets certain hedging behaviour, particularly for instruments tracking industrials or global exporters. With fewer barriers at ports, delivery-based revenue for some American manufacturers could surprise to the upside in third-quarter reports. Markets that thrive on precision are unlikely to miss this cue.
Market Responses and Opportunities
Calhoun’s decision to make use of the window so quickly shows how manufacturers may push to cycle deliveries now before policy slack potentially tightens again. For anyone dealing with options on these names, that affects implied volatility assumptions. Fixed income, too, may price in improved corporate yield curves within sectors that benefit from smoother trade flow. It’s transitory, but exploitable.
If we look more closely at the 90-day length, this is a short time for corporate planning—but more than enough time for trading strategies tied to freight volumes, export data, or quarterly earnings guidance. What matters here is pacing.
We are already seeing recalibrations in futures tied to transportation and aerospace indexes. As players on both sides navigate these few tariff-free months, price discovery gains a layer of predictability—enough to adjust gamma exposure or delta-neutral structures with more confidence than we had back in April, when deliveries were stalled altogether.
The current rhythm, however, means one cannot assume durability. For hedging purposes, it makes sense to stay lean at the back end of the curve. The front, though, should be approached actively. Watch the 30- to 60-day marks for both technical support levels and signs of shipping acceleration. The delivery has reopened a door for now. How wide it stays depends on matters outside market control, but price action this week suggests participation is justified. Where volumes follow, liquidity often improves. That’s something we can plan for.
