The president of the United States, Donald Trump, has overturned the traditional global commercial environment, in some cases even undermining free trade agreements with partners in favor of bilateral agreements that seem to be light in the details but heavy in symbolism.
A recurring symbol: Boeing aircraft.
Since Trump announced tariffs in April, a pattern has emerged. Countries that attack trade agreements with the United States often announce great orders for Boeing aircraft.
For example, during the visit of South Korean President Lee Jae Myung to Washington, Korean Air announced an order for 103 Boeing aircraft valued at $ 36.2 billion. That order, combined with another agreement of $ 13.7 billion with GE Aerospace, is the largest agreement in the history of the airline.
As part of his agreement, Japan also made a request for 100 Boeing aircraft, although the value of the order was not revealed. Even smaller economies such as Malaysia, Indonesia and Cambodia have included Boeing purchases in their commercial agreements.
Even the United Kingdom made an order of $ 10 billion for Boeing aircraft as part of its commercial agreement with the United States in May, according to Treasury Secretary Howard Lutnick. Days later, Father IAG of British Airways announced an order for 32 Boeing aircraft on May 9, for a total of $ 12.7 billion.
Why aircraft and why Boeing?
Why is Boeing such an accessory in Trump’s offers? The first reason: it looks good for the president.
John Grant, founder of the aviation consultant, Midas Aviation, told CNBC that “[the] The simple answer is that the airplanes are high profile and Trump always wants profile. “
“Airplanes are very visible trade statements and have a high value, which makes them particularly attractive in such agreements between countries,” he added.
Wendy Cutler, vice president of the Asia Society Policy Institute, said that these high value agreements allow countries to demonstrate their commitment to reduce bilateral commercial surpluses with the United States, the reason why Trump gave to invoke emergency powers for imposing rates.
Aircraft orders also come with several other advantages. Unlike products such as steel or rice, airplanes are less likely to revolted any feathers when it comes to national industries.
“Imports of these aircraft are not politically difficult for most commercial partners of the United States, unlike metals or agricultural imports,” said Homin Lee, Lombard Odier Senior Macro Strategist.
Japan, for example, has long protected its rice industry, while South Korea is an important steel exporter for the United States, which makes reciprocal American steel purchases not practical. Seoul was the fourth largest steel exporter to the United States in 2024, according to the International Trade Administration under the United States Department of Commerce.
In addition, aircraft orders generally cover years. The accumulation of Boeing production is 11.5 years, according to the Mercado Forecast International research firm, while Airbus follows slightly at 10.6 years.
This long delivery window means that the airlines of the countries entering Trump agreements can announce purchases without any immediate financial tension.
But not everything is performative.
The international tourism industry is on a rise, and passenger planes made in the US are the ideal element to include in any commercial agreement with Trump, said Lee de Lombard Odier. “They are actually necessary.”
According to the International Air Transport Association, it is projected that the net gains of global airlines will reach $ 36 billion in 2025, compared to the $ 32.4 billion in 2024, with profit margins that increase to 3.7%. Total income is expected to reach a record of $ 979 billion, 1.3% more than last year.
Beyond the economy, Boeing has symbolic weight. “It’s an iconic American company,” said Cutler. And with the aircraft manufacturing industry, a duo between Boeing and Airbus, the options are limited.
Boeing appears in Trump’s agreements despite security scandals, including a door panel on an Alaska Airlines flight in 2024.
The accusations of complainants and the quality of production quality have pursued the company, but Grant said that Boeing has introduced improvements that airlines are beginning to see first hand.
A Reuters report in August revealed that the airlines of the airlines have expressed more confidence in Boeing’s ability to deliver airplanes to the “correct quality.”
CNBC did not immediately receive an response from the Office of the United States Trade Representative for comments.
