China instructs airlines to stop buying American
parts
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Description:
China has also
instructed its airlines to stop accepting deliveries of Boeing jets in
retaliation of U.S. tariffs.
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Transcription:
George: Now let's take
a look at the top stories.
Breaking today, we
start with the growing fallout from the tariff war with China. Chief economics
correspondent Rebecca Jarvis is here to break it down. Good morning, Rebecca.
Rebecca: Hey, George.
Hi, guys. And we've seen the trade wars impact on stocks; now we're seeing it
hit the real economy and American companies, including Boeing this morning
which has suppliers across all fifty states. China instructing its airlines to
stop accepting deliveries of Boeing jets and to stop buying American airline
parts.
China also retaliating
by restricting exports of rare earth metals and magnets needed to build U.S.
cruise missiles, smart bombs, and fighter jets that could impact national
security. Meantime, the Trump administration has essentially blocked U.S.
company Nvidia, which makes computer chips essential to powering AI, from
selling to China to help the U.S. compete. But Nvidia says it will lose $5.5
billion because of this.
And finally, United
Airlines is cutting back on flights and warning the economy is impossible to
predict with any degree of confidence. And this is something we're hearing from
a lot of companies because of tariffs and because of this trade war, it's hard
to see the future, but it is a ripple effect.
George: Yeah, that's
pretty scary.
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Questions:
1. What specific
actions has China taken in response to the U.S. tariffs that have affected
Boeing's operations and supply chain?
2. How might Nvidia's
inability to sell chips to China impact its business and the broader technology
sector, particularly regarding advancements in artificial intelligence?
3. What are the
potential long-term implications of the ongoing tariff war on the U.S. economy,
as highlighted by the concerns from United Airlines and other companies?