US President Donald Trump has changed the traditional global trade environment, in some cases, even undermining the free trade agreements with partners in favor of bilateral agreements that seem light on details but heavy on symbolism.
A recurring symbol: Boeing aircraft.
Since Trump announced prices in April, a model emerged. Countries that conclude trade in agreements with the United States often announce large orders from Boeing Jets.
For example, during the visit of the South Korean president Lee Jae Myung in Washington, Korean Air announced an order of 103 Boeing aircraft worth $ 36.2 billion. This order, combined with another $ 13.7 billion agreement with Ge Aerospace, would be the most important agreement in the history of the airline.
As part of its agreement, Japan also placed an order for 100 Boeing Jets, although the value of the order was not disclosed. Even small savings such as Malaysia, Indonesia and Cambodia have included Boeing purchases in their trade agreements.
Even the United Kingdom has placed an $ 10 billion order for Boeing planes as part of its trade agreement with the United States in May, according to the secretary of the Treasury Howard Lux. A few days later, the parent of British Airways Iag announced an order of 32 Boeing Jets on May 9, totaling $ 12.7 billion.
Why the planes – and why Boeing?
Why is Boeing such a must in Trump’s agreements? The first reason: it looks good for the president.
John Grant, founder of the Aviation Council Midas Aviation told CNBC that “[the] A simple answer is that the planes are very publicized and that Trump always wants a profile. “”
“Plans are very visible and high value declarations, which makes them particularly attractive in such agreements between countries,” he added.
Wendy Cutler, vice-president of the Asia Society Policy Institute, noted that these high-value agreements allow countries to demonstrate their commitment to reduce bilateral trade surpluses with the United States-the reason why Trump has given to invoke emergency powers to impose prices.
Aircraft orders are also delivered with several other advantages. Unlike basic products such as steel or rice, planes are less likely to ruffle feathers with regard to national industries.
“Imports of these aircraft are not politically difficult for most trade partners in the United States, unlike metals or agricultural imports,” said Homin Lee, Macro-Stutège Main at Lombard Odier.
Japan, for example, has long protected its rice industry, while South Korea is a major steel exporter in the United States – making reciprocal purchases of American steel impassable. Seoul was the fourth steel exporter in the United States in 2024, according to the international administration of the US trade department.
In addition, order orders generally extend for years. Boeing’s Production Backlog is 11.5 years old, according to the market company Forecast International, while Airbus takes place slightly at 10.6 years.
This long delivery window means that airlines from countries that conclude agreements with Trump can announce purchases without any immediate financial pressure.
But that’s not all performative.
The international tourism industry is increasing, and passenger planes manufactured in the United States are the ideal element to include in any trade agreement with Trump, said Lee de Lombard Odier. “They are really necessary.”
According to the International Air Transport Association, the profits from Global Airline Net are expected to reach $ 36 billion in 2025, compared to $ 32.4 billion in 2024, with beneficiary margins of 3.7%. Total turnover is expected to reach a record of $ 979 billion, up 1.3% compared to last year.
Beyond the economy, Boeing has a symbolic weight. “It’s an emblematic American company,” said Cutler. And with the aircraft manufacturing industry actually a duopoly between Boeing and Airbus, the options are limited.
Boeing is in Trump’s agreements despite security scandals, including a door panel rash on an Alaska Airlines flight in 2024.
The allegations of denunciation and the concerns of the quality of the production rose the company, but Grant noted that Boeing had introduced improvements that airlines are starting to see from the first hand.
A Reuters report in August revealed that the bosses of airlines expressed more confidence in Boeing’s ability to deliver jets to “good quality”.
CNBC did not immediately have a response from the office of the US trade representative for comments.
