Boeing Becomes a "Negotiation Card"... Benefits from Purchase Promises in Trade Deals
Japan Agrees to Buy 100 Boeing Aircraft
Similar Deals Reached with United Kingdom and Indonesia
As countries engaged in negotiations have begun purchasing aircraft in response to tariff pressure from U.S. President Donald Trump, Boeing is benefiting from these developments.
On the 23rd (local time), the online media outlet Axios reported that as U.S. trade partners make concessions in tariff negotiations, Boeing is securing global contracts.
The White House announced the previous day that Japan had agreed to purchase 100 Boeing aircraft as part of a trade agreement with the United States. Previously signed trade deals with the United Kingdom and Indonesia also included provisions for purchasing Boeing aircraft.
There are expectations that a similar agreement will be included in a future U.S.-China trade deal. There have also been reports that India is considering ordering Boeing aircraft as a bargaining chip in its negotiations.
Previously, economic cooperation agreements signed by the Trump administration with Saudi Arabia, Qatar, and the United Arab Emirates (UAE) also included Boeing purchases. Matthew Miller, an analyst at CFRA Research, analyzed that "these countries turned to Boeing either because they faced tariff threats or sought to strengthen ties with the U.S. administration." He added, "Because aircraft are expensive, they can quickly change trade statistics," and "Boeing is increasingly becoming the basic means of U.S. exports."
Axios pointed out that there have been previous cases where Boeing aircraft orders were used as diplomatic leverage. For example, in 2011, former President Barack Obama boasted after Indonesia agreed to purchase around 200 Boeing aircraft, saying it was "the largest deal Boeing has ever signed, if I'm not mistaken."
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Axios assessed that this is a decisive turning point for Boeing, which had been facing business difficulties due to aircraft quality issues, legal problems, and trade barriers. However, they noted that this situation is not because President Trump favors Boeing, but rather because Boeing is useful to him.
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