US President Donald Trump has increased the traditional global trading environment, in some cases also reduced free trade agreements with partners in favor of bilateral deals that highlight the details but are heavy on symbolism.
A recurring symbol: Boing plane.
Since Trump announced the tariff in April, a pattern has emerged. Countries with trade deal with the US often declare major orders for Boeing Jets.
For example, during South Korean President Lee J. Mayung’s visit to WashingtonKorean Air announced an order for the 103 Boeing aircraft, which is priced at $ 36.2 billion. He is combined with a deal of another $ 13.7 billion with GE Aerospace Allegedly The biggest deal in the history of the airline.
As part of your deal, Japan also kept An order for 100 Boeing JetHowever the value of the order was not disclosed. Even small economies Malaysia, IndonesiaAnd Cambodia Its business agreements include Boeing procurement.
Even the UK Ordering $ 10 billion According to Treasury Secretary Howard Lutnik, for the Boeing aircraft as part of its trade deal with the US in May. After days, British Airways’s parents IAG On 9 May, an order for 32 Boeing Jets announced, a total of $ 12.7 billion.
Why the aircraft – and why Boeing?
Why is Boeing such a stability in Trump’s deals? First reason: It looks good for the President.
John Grant, founder of Aviation Consultancy Midas Aviation, told CNBC that “() The simple answer is that the aircraft is high profile and Trump always wants profiles.”
He said, “There are very visible statements of aircraft trade and high values, which make them particularly attractive in such agreements between countries,” he said.
Vice President of the Asia Society Policy Institute Wendy Cutler said that these allow high-value countries to demonstrate their commitment to reduce bilateral trade surplus with the US-Tramp gave the reason for implementing emergency powers to impose tariffs.
The orders of the aircraft also come with many other advantages. Unlike items like steel or rice, aircraft are less likely to rub any wings when it comes to domestic industries.
Lombard Odier’s senior macro strategist Homin Lee said, “Import of these airplanes is not politically difficult for most of the US business partners, unlike metals or agricultural imports.”
For example, Japan has long been Protect your rice industryWhile South Korea is a major steel exporter for the US – it is impractical to make an impractical purchase of American steel. Was seoul Steel’s fourth largest exporter for America In 2024, according to the International Trade Administration under the US Department of Commerce.
In addition, the orders of the aircraft usually occur for years. Boeing’s production backlog is 11.5 years, According to Market Research firm Forecast InternationalWhile the Airbus trails a little in 10.6 years.
This long delivery window means that the airlines of countries entering deals with Trump can announce the purchase without any financial stress.
But all this is not a performance.
Lombard Odier’s Lee said the international tourism industry is on an abduction, and the US med passenger aircraft is an ideal item to include in any business deal with the aircraft Trump. “They are really needed.”
As International Air Transport Association, Global airline net profit is estimated to reach $ 36 billion in 2025, in 2024 by $ 32.4 billion, profit margin increased to 3.7%. The total revenue is expected to be a hit of 1.3% record $ 979 billion compared to last year.
Beyond economics, Boeing carries symbolic weight. “It is a reputed American company,” said Katler. And effectively with the aircraft manufacturing industry, a duality, options are limited between Boeing and Airbus.
Boeing figures in Trump’s deals including one despite safety scams Door panel blowout In 2024 on a flight of Alaska Airlines.
Whistleblower charge And the quality of the quality of production has dogs the company dog, but Grant said that Boeing has Better improvement For the first time that airlines have started seeing.
A Reuters Report in August It turned out that the airline owners expressed more confidence in Boeing’s ability to give jet on the “correct quality”.
CNBC did not immediately respond to the US Business Representative’s office for the comments.
