U.S. President Donald Trump has upended the normal world buying and selling surroundings, in some circumstances even undermining free trade agreements with companions in favor of bilateral deals that seem like gentle on particulars however heavy on symbolism.
One recurring image: Boeing plane.
Since Trump introduced tariffs in April, a sample has emerged. Countries that strike trade deals with the U.S. usually announce giant orders for Boeing jets.
For instance, throughout South Korean President Lee Jae Myung’s visit to Washington, Korean Air introduced an order for 103 Boeing plane valued at $36.2 billion. That order, mixed with one other $13.7 billion cope with GE Aerospace is reportedly the most important deal in the airline’s historical past.
As a part of its deal, Japan additionally positioned an order for 100 Boeing jets, though the worth of the order was not disclosed. Even smaller economies comparable to Malaysia, Indonesia, and Cambodia have included Boeing purchases in their trade agreements.
Even the UK placed a $10 billion order for Boeing plane as a part of its trade cope with the U.S. in May, in keeping with Treasury Secretary Howard Lutnick. Days later, British Airways’ parent IAG introduced an order for 32 Boeing jets on May 9, totaling $12.7 billion.
Why plane — and why Boeing?
Why is Boeing such a fixture in Trump’s deals? The first cause: it seems to be good for the president.
John Grant, founding father of aviation consultancy Midas Aviation informed CNBC that “[the] simple answer is that planes are high profile and Trump always wants profile.”
“Aircraft are very visible statements of trade and have a high value, making them particularly attractive in such agreements between countries,” he added.
Wendy Cutler, Vice President on the Asia Society Policy Institute, famous that these high-value deals enable international locations to reveal their dedication to lowering bilateral trade surpluses with the U.S — the rationale Trump gave to invoke emergency powers for imposing tariffs.
Aircraft orders additionally include a number of different benefits. Unlike commodities comparable to metal or rice, planes are much less prone to ruffle any feathers in terms of home industries.
“Imports of these airplanes are not politically difficult for most trading partners of the U.S., unlike metals or agricultural imports,” mentioned Homin Lee, senior macro strategist at Lombard Odier.
Japan, for instance, has lengthy protected its rice industry, whereas South Korea is a significant metal exporter to the U.S. — making reciprocal purchases of American metal impractical. Seoul was the fourth-largest exporter of steel to the U.S. in 2024, in keeping with the International Trade Administration below the U.S. Commerce Department.
Moreover, plane orders usually span years. Boeing’s manufacturing backlog stands at 11.5 years, according to market research firm Forecast International, whereas Airbus trails barely at 10.6 years.
This lengthy supply window implies that airways from international locations getting into into deals with Trump can announce purchases with none quick monetary pressure.
But its not all performative.
The worldwide tourism trade is on an upswing, and U.S. made passenger plane are the perfect merchandise to incorporate in any trade cope with Trump, mentioned Lombard Odier’s Lee. “They’re actually needed.”
According to the International Air Transport Association, world airline web income are projected to achieve $36 billion in 2025, up from $32.4 billion in 2024, with revenue margins rising to three.7%. Total income is anticipated to hit a document $979 billion, up 1.3% from final yr.
Beyond economics, Boeing carries symbolic weight. “It’s an iconic American company,” mentioned Cutler. And with the plane manufacturing trade successfully a duopoly between Boeing and Airbus, choices are restricted.
Boeing figures in Trump’s deals regardless of security scandals together with a door panel blowout on an Alaska Airlines flight in 2024.
Whistleblower allegations and manufacturing high quality issues have dogged the corporate, however Grant famous that Boeing has introduced improvements that airways are starting to see firsthand.
A Reuters report in August revealed that airline bosses have expressed extra confidence in Boeing’s means to ship jets on the “right quality.”
CNBC didn’t instantly obtain a reply from the Office of the U.S. Trade Representative for feedback.