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Forbes Daily Briefing

A Trump Win Could Be Costly For Boeing And Aerospace & Defense

Forbes Daily Briefing

Forbes

Careers, Business, News, Entrepreneurship

4.612 Ratings

🗓️ 4 November 2024

⏱️ 5 minutes

🧾️ Download transcript

Summary

Tariffs and renewed trade wars could raise costs and derail overseas sales for the embattled plane maker, while the defense budget and arms exports could be threatened.

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Transcript

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0:00.0

Here's your Forbes Daily Briefing, bonus story of the week.

0:04.5

Today on Forbes, a Trump win could be costly for Boeing and aerospace and defense.

0:11.7

New Boeing CEO Kelly Ortberg has a full plate. His Seattle area assembly workers are on strike.

0:18.8

Customers and regulators are breathing down his neck to fix manufacturing

0:22.0

quality problems with the company's commercial airplanes, and his defense and space division

0:26.6

is bleeding red ink. But if voters return former President Donald Trump to the White House in the

0:32.0

November 5th election, he could face a plane load of new problems.

0:37.5

On the campaign trail, Trump has promised to enact sweeping tariffs on imports that would

0:41.8

ignite trade wars that could make those waged in his first administration look like a

0:45.9

water gun fight.

0:48.0

Defense spending and exports could be threatened, analysts say, and conservative ambitions

0:52.2

to overhaul the Federal Aviation Administration,

0:54.8

would cause turmoil at a time when the agency is deeply engaged in trying to diagnose and

0:59.5

fix systemic problems at Boeing.

1:02.7

Trump has proposed tariffs of 10 to 20 percent on every country that trades with the U.S.

1:07.4

and 60 percent tariffs on China.

1:10.4

Trump and his supporters claim doing so would bring manufacturing

1:13.6

back to the United States. The Coalition for a Prosperous America, an industry-supported group

1:19.1

that is lobbied for more trade protections, projects that a 10% universal tariff would create

1:24.5

2.8 million jobs. However, for Boeing and the rest of the U.S. commercial

1:29.9

aerospace industry, which generated a $47 billion trade surplus in 2023, the Trump tariffs

1:36.3

would be terrible. Richard Abolafia, a managing director at Aerodynamic Advisory, said that the

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