Boeing’s chief executive leaves no doubt he views president Donald Trump’s trade negotiating strategy as providing a significant boost to Boeing’s order book.
CEO Kelly Ortberg also says recent economic deals between the USA and trading partners could leave Boeing facing less financial impact this year from tariffs than previously predicted.
“Everybody’s looking at their trade imbalance and saying, ‘How do I address that?’ And, no better way than to make a big aircraft order,” Ortberg said on 29 July during Boeing’s second-quarter earnings call.
The comment comes after Boeing in recent months landed several sizeable aircraft orders linked to trade negotiations between the Trump administration and various foreign governments.
Most recently, on 23 July, the White House revealed broad terms of a sweeping trade deal with Japan that it said includes a commitment from Japan to purchase 100 Boeing jets.
Earlier this month, after Bahrain’s crown prince visited the White House, Bahrain carrier Gulf Air said it agreed to buy 12 787s.
And on 14 May, Trump sat beside Ortberg at a meeting in Doha during which Qatar Airways chief Badr Mohammed Al-Meer signed an order for 130 787s and 130 777-9s – all powered by GE Aerospace turbofans. Including options, the White House put the value of that deal at up to $96 billion.
The day prior, while Trump was in Saudi Arabia, Riyadh lessor AviLease said it ordered 20 737 Max 8s and took options for a further 10.
The orders and commitments have come as part of broader pledges by those countries to invest in the USA, making clear Trump views Boeing as a prime vehicle for such investment.
More broadly, the US administration has looked favourably on the aerospace industry when negotiating new trade terms, signalling that the White House took to heart aerospace industry warnings that tariffs could upend the sector.
A US-UK deal came together in May under which the USA will impose a 10% tariff on UK imports – but aerospace products are exempt. Similarly, the USA and UE on 28 July reached a trade agreement that exempts aerospace products from tariffs.
In April, Boeing estimated tariffs would cost it $500 million this year, a figure chief financial officer Brian West called “manageable and within our plan”.
Now Ortberg suspects the financial hit might be less.
“If we continue to see this zero-for-zero [tariffs], I think we’ll… be able to beat that $500 million bogey that we’ve established,” he says.
