Why Boeing planes feature so much in Trump trade deals
US President Donald Trump developed the traditional global trade environment and in some cases weakened even free trade agreements with partners in favor of bilateral agreements, which seem to be slightly in detail but seem heavy to symbolism.
A recurrent symbol: Boeing aeroplane.
Trump has emerged since he announced the tariffs in April. Countries trading with the United States often announce large orders for Boeing Jets.
For example, during South Korean President Lee Jae Myung’s visit to Washington, Korea Air announced an order for 103 Boeing plane worth $ 36.2 billion. This order is combined with a $ 13.7 billion agreement with Ge Aerospace reported The biggest agreement in airline history.
As part of the agreement in Japan An order for 100 boeing jetsAlthough the value of the order has not been disclosed. Even smaller economies like Malaysia– IndonesiaAnd Cambodia They included Boeing purchases in trade agreements.
Even the UK He gave an order of $ 10 billion According to the Treasury Secretary Howard Lutnick, for the Boeing aircraft as part of the trade agreement with the US in May. Days later, British Airways’s main Iag On May 9, 32 Boeing Jets announced a total of $ 12.7 billion.
Why plane – and why boeing?
Why is Boeing like this in Trump’s agreements? First reason: looks good for the president.
John Grant, the founder of Aviation Consultancy, told CNBC this. “[the] The simple answer is that the aircraft is high profile and Trump always wants profiles. “
“Aircraft are very visible trade statements and have a high value, which makes them particularly attractive in such agreements between countries.”
Wendy Cutler, Vice President of the Asian Community Policy Institute, said that these high-valuable agreements allow countries to show the commitment to reduce bilateral trade surplus with the US-Trump’s reason for the emergency powers to apply tariffs.
Aircraft orders also come with a few other advantages. Unlike commodities such as steel or rice, aircraft is less likely to launch any feathers when it comes to domestic industries.
“The import of these aircraft is not politically difficult for most trade partners, unlike the imports of these aircraft,” imports of these aircraft. ” He said.
For example, Japan has existed for a long time It should protect the rice industrySouth Korea is a major steel exporter to the US – practicing the mutual purchases of American steel. Seoul Fourth Grand Steel Exporter to the USA According to the International Trade Administration under the US Commercial Department, in 2024.
Moreover, aircraft orders typically covers years. Boeing’s accumulated workshop for 11.5 years. According to Sunday Research Company Estimizing InternationalAirbus gently traces in 10.6 years.
This long delivery window means that the airlines from countries entering the agreement with Trump can announce purchases without any financial coercion.
But not all executives.
The international tourism industry is an upward and the US passenger aircraft is an ideal product to be included in any trade agreement with Trump. “They actually need it.”
Accordingly International Air Transport Association, Global airline net profits are expected to reach 32.4 billion dollars in 2025 to 36 billion dollars and profit margins rise to 3.7%. Total income is expected to break a record of 979 billion dollars with an increase of 1.3% compared to last year.
Beyond the economy, Boeing carries symbolic weight. “This is an iconic American company, Cut Cutler said. And the options are limited with an effective duopol between the aircraft manufacturing industry Boeing and Airbus.
In 2024, Boeing makes agreements in Trump’s agreements, despite security scandals, including a door panel explosion on Alaska Airlines flight.
Allegations of flying information and production quality concerns played the company, but Grant Boeing’s IMPRESSED IMPORTANT These airlines are starting to see from the first hand.
A Reuters Report in August He showed more confidence in the ability of airline bosses to deliver the jets of Boeing with “right quality”.
The CNBC did not receive an immediate response from the US Trade Representative Office for a comment.
