A new 737 MAX jet had to be returned from China to the U.S.
Transcript:
It seems President Trump’s sweeping tariff reform has his another industry: air travel. A Boeing jet set to be delivered to a Chinese airline had to reverse course and was forced back to the United States. The 737 MAX jet was already at one of Boeing’s completion centers in China.
A new mandate from China’s government reportedly instructed airlines not to buy new planes from Boeing, and permission would be needed before accepting any planes that were previously ordered.
The cause of the reversal, of course, is tariffs. China has imposed a 125% tariff on U.S. imports – including planes. According to aviation consultant IBA, a new 737 MAX is worth roughly $55 million. Meaning a new delivery would run a Chinese airline more than double what the plane normally costs.
However, it’s not clear whether China or the United States ordered the new plane to return to Boeing’s Seattle hub.
That’ll do it for your daily briefing. From New York City, I’m Kelsey Barberio with TheStreet.
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