Boeing Jets Central to Trump-Era Trade Deals Amid Symbolism and Strategy

Boeing Jets as a Symbol and Strategy in Trump’s Trade Agreements

Under President Donald Trump’s administration, the U.S. trade landscape has shifted towards bilateral agreements that emphasize symbolic gestures alongside economic objectives. A notable element recurring in these deals is the inclusion of Boeing aircraft orders.

High-Profile Aircraft Orders in Recent Trade Deals

Since the imposition of tariffs in April, several countries have incorporated significant Boeing jet purchases as part of their trade arrangements with the U.S. For instance, during South Korean President Lee Jae Myung’s visit to Washington, Korean Air announced an order for 103 Boeing planes valued at $36.2 billion. This was accompanied by a $13.7 billion deal with GE Aerospace, marking the largest transactions in Korean Air’s history.

Japan also committed to buying 100 Boeing jets within its trade deal, although the total value was not publicly disclosed. Smaller economies such as Malaysia, Indonesia, and Cambodia have similarly included Boeing aircraft in their agreements. The U.K. placed a $10 billion Boeing order in its May trade deal, followed by British Airways’ parent company, IAG, ordering 32 jets worth $12.7 billion.

Why Boeing? The Intersection of Symbolism and Practicality

Experts suggest multiple reasons why Boeing jets have become a staple in these deals. John Grant, founder of aviation consultancy Midas Aviation, told CNBC that aircraft orders provide high-visibility, high-value trade statements that align with President Trump’s preference for symbolic achievements.

Wendy Cutler, Vice President at the Asia Society Policy Institute, explained that these sizable purchases allow partner countries to signal efforts to reduce trade surpluses with the U.S., a key justification for Trump’s tariffs. Additionally, aircraft imports tend to be politically less sensitive than commodities such as steel or agricultural goods, smoothing negotiations.

Homin Lee, senior macro strategist at Lombard Odier, noted that unlike protected sectors—such as Japan’s rice industry or South Korea’s steel exports—aircraft imports do not provoke domestic opposition in trading partners. Data from the U.S. Commerce Department confirms South Korea remains a major steel exporter to the U.S., complicating reciprocal trade in that sector.

Long-Term Delivery Horizons Mitigate Immediate Financial Pressure

Boeing’s substantial production backlog, currently estimated at 11.5 years by Forecast International, allows airlines to commit to large orders without immediate capital outlay. This extended delivery window benefits countries entering into trade agreements by deferring financial impact.

Beyond Symbolism: Economic and Industry Realities

The resurgence of international travel supports genuine demand for new aircraft. According to the International Air Transport Association, global airline net profits are projected to rise to $36 billion in 2025, with revenues approaching $979 billion, underscoring the sector’s growth.

Cutler emphasized Boeing’s status as an iconic American company and highlighted the duopoly in commercial aircraft manufacturing between Boeing and Airbus, limiting alternatives for buyers.

Challenges Amid Confidence Rebound

Boeing’s inclusion in trade deals persists despite recent safety incidents, including a door panel failure on an Alaska Airlines flight in 2024, and ongoing whistleblower allegations regarding production quality. However, industry insiders report improvements, with a Reuters article noting increased airline confidence in Boeing’s ability to deliver quality jets.

The Office of the U.S. Trade Representative did not respond to requests for comment.