Boeing gets dragged into in U.S.-China trade war

A new 737 MAX jet had to be returned from China to the U.S.

Transcript

00:00It seems President Trump's sweeping tariff reform has hit another industry, air travel.

00:05A Boeing jet set to be delivered to a Chinese airline had to reverse course and was forced

00:09back to the United States.

00:11The 737 MAX jet was already at one of Boeing's completion centers in China.

00:16A new mandate from China's government reportedly instructed airlines not to buy new planes

00:20from Boeing, and permission would be needed before accepting any planes that were previously

00:24ordered.

00:25The cause of the reversal, of course, is tariffs.

00:27China has imposed a 125% tariff on U.S. imports, including planes.

00:33According to aviation consultant IBA, a new 737 MAX is worth roughly $55 million, meaning

00:40a new delivery would run a Chinese airline more than double what the plane normally costs.

00:45However, it's not clear whether China or the United States ordered the new plane to return

00:49to Boeing's Seattle hub.

00:51That'll do it for your daily briefing.

00:52From New York City, I'm Kelsey Barbario with The Street.

00:57From New York City, I'm Kelsey Barbario with The Street.

00:58From New York City, I'm Kelsey Barbario with The Street.

00:59From New York City, I'm Kelsey Barbario with The Street.

01:00From New York City, I'm Kelsey Barbario with The Street.

01:01From New York City, I'm Kelsey Barbario with The Street.

01:02From New York City, I'm Kelsey Barbario with The Street.

01:03From New York City, I'm Kelsey Barbario with The Street.

01:04From New York City, I'm Kelsey Barbario with The Street.

01:05From New York City, I'm Kelsey Barbario with The Street.

01:06From New York City, I'm Kelsey Barbario with The Street.

01:07From New York City, I'm Kelsey Barbario with The Street.

01:08From New York City, I'm Kelsey Barbario with The Street.

01:09From New York City, I'm Kelsey Barbario with The Street.