Since April, a pattern has emerged: Countries that strike trade deals with the U.S. often announce large orders for Boeing jets.
Countries such as South Korea, Japan, the UK, Malaysia, and Indonesia have placed large orders for Boeing aircraft as part of trade negotiations. A Boeing sign sits on a building near Boeing Field, as trade tensions escalate over U.
S. tariffs with China, in Seattle, Washington, U.S. April 22, 2025.U.S. President Donald Trump has upended the traditional global trading environment, in some cases even undermining free trade agreements with partners in favor of bilateral deals that appear to be light on details but heavy on symbolism. Since April, a pattern has emerged. Countries that strike trade deals with the U.S. often announce large orders for Boeing jets., Korean Air announced an order for 103 Boeing aircraft valued at $36.2 billion. That order, combined with another $13.7 billion deal with GE Aerospace isfor Boeing aircraft as part of its trade deal with the U.S. in May, according to Treasury Secretary Howard Lutnick. Days later,Why is Boeing such a fixture in Trump's deals? The first reason: it looks good for the president. John Grant, founder of aviation consultancy Midas Aviation told CNBC that " 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 at the Asia Society Policy Institute, noted that these high-value deals allow countries to demonstrate their commitment to reducing bilateral trade surpluses with the U.S — the reason Trump gave to invoke emergency powers for imposing tariffs. Aircraft orders also come with several other advantages. Unlike commodities such as steel or rice, planes are less likely to ruffle any feathers when it comes to domestic industries. "Imports of these airplanes are not politically difficult for most trading partners of the U.S., unlike metals or agricultural imports," said Homin Lee, senior macro strategist at Lombard Odier., while South Korea is a major steel exporter to the U.S. — making reciprocal purchases of American steel impractical. Seoul wasaccording to market research firm Forecast International This long delivery window means that airlines from countries entering into deals with Trump can announce purchases without any immediate financial strain.The international tourism industry is on an upswing, and U.S. made passenger aircraft are the ideal item to include in any trade deal with Trump, said Lombard Odier's Lee. "They're actually needed."global airline net profits are projected to reach $36 billion in 2025, up from $32.4 billion in 2024, with profit margins rising to 3.7%. Total revenue is expected to hit a record $979 billion, up 1.3% from last year. Beyond economics, Boeing carries symbolic weight. "It's an iconic American company," said Cutler. And with the aircraft manufacturing industry effectively a duopoly between Boeing and Airbus, options are limited.revealed that airline bosses have expressed more confidence in Boeing's ability to deliver jets at the "right quality."
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