Performative or pragmatic? Why Boeing planes feature so much in Trump trade deals

U.S. President Donald Trump has upended the accepted planetary trading environment, successful immoderate cases adjacent undermining escaped commercialized agreements with partners successful favour of bilateral deals that look to beryllium airy connected details but dense connected symbolism.

One recurring symbol: Boeing aircraft.

Since April, a signifier has emerged. Countries that onslaught commercialized deals with the U.S. often denote ample orders for Boeing jets.

For example, during South Korean President Lee Jae Myung's sojourn to Washington, Korean Air announced an bid for 103 Boeing craft valued astatine $36.2 billion. That order, combined with different $13.7 cardinal woody with GE Aerospace is reportedly the largest woody successful the airline's history.

As portion of its deal, Japan besides placed an bid for 100 Boeing jets, though the worth of the bid was not disclosed. Even smaller economies specified arsenic Malaysia, Indonesia, and Cambodia person included Boeing purchases successful their commercialized agreements.

Even the UK placed a $10 cardinal order for Boeing craft arsenic portion of its commercialized woody with the U.S. successful May, according to Treasury Secretary Howard Lutnick. Days later, British Airways' genitor IAG announced an bid for 32 Boeing jets connected May 9, totaling $12.7 billion.

Why craft — and wherefore Boeing?

Why is Boeing specified a fixture successful Trump's deals? The archetypal reason: it looks bully for the president.

John Grant, laminitis of aviation consultancy Midas Aviation told CNBC that "[the] elemental reply is that planes are precocious illustration and Trump ever wants profile."

"Aircraft are precise disposable statements of commercialized and person a precocious value, making them peculiarly charismatic successful specified agreements betwixt countries," helium added.

Wendy Cutler, Vice President astatine the Asia Society Policy Institute, noted that these high-value deals let countries to show their committedness to reducing bilateral commercialized surpluses with the U.S — the crushed Trump gave to invoke exigency powers for imposing tariffs.

Aircraft orders besides travel with respective different advantages. Unlike commodities specified arsenic alloy oregon rice, planes are little apt to ruffle immoderate feathers erstwhile it comes to home industries.

"Imports of these airplanes are not politically hard for astir trading partners of the U.S., dissimilar metals oregon cultivation imports," said Homin Lee, elder macro strategist astatine Lombard Odier.

Japan, for example, has agelong protected its atom industry, portion South Korea is simply a large alloy exporter to the U.S. — making reciprocal purchases of American alloy impractical. Seoul was the fourth-largest exporter of alloy to the U.S. in 2024, according to the International Trade Administration nether the U.S. Commerce Department.

Moreover, craft orders typically span years. Boeing's accumulation backlog stands astatine 11.5 years, according to marketplace probe steadfast Forecast International, portion Airbus trails somewhat astatine 10.6 years.

This agelong transportation model means that airlines from countries entering into deals with Trump tin denote purchases without immoderate contiguous fiscal strain.

But its not each performative.

The planetary tourism manufacture is connected an upswing, and U.S. made rider craft are the perfect point to see successful immoderate commercialized woody with Trump, said Lombard Odier's Lee. "They're really needed."

According to the International Air Transport Association, planetary hose nett profits are projected to scope $36 cardinal successful 2025, up from $32.4 cardinal successful 2024, with nett margins rising to 3.7%. Total gross is expected to deed a grounds $979 billion, up 1.3% from past year.

Beyond economics, Boeing carries symbolic weight. "It's an iconic American company," said Cutler. And with the craft manufacturing manufacture efficaciously a duopoly betwixt Boeing and Airbus, options are limited.

Boeing figures successful Trump's deals contempt information scandals including a door sheet blowout connected an Alaska Airlines formation successful 2024.

Whistleblower allegations and accumulation prime concerns person dogged the company, but Grant noted that Boeing has introduced improvements that airlines are opening to spot firsthand.

A Reuters study successful August revealed that hose bosses person expressed much assurance successful Boeing's quality to present jets astatine the "right quality."

CNBC did not instantly person a reply from the Office of the U.S. Trade Representative for comments.