Boeing: A winner in US trade wars?

Nations striking deals are buying more jets

- NIRAJ CHOKSHI

There typically aren't many winners in a trade war, but Boeing appears to be reaping some rewards from the one started by US President Donald Trump.

The aerospace company has received a steady stream of new orders as part of trade deals between the United States and other countries. These sales could be a boon for Boeing as it emerges from years of bruising crises. They also allow Trump to claim that his unconventional trade policies are helping American manufacturing.

Orders for hundreds of Boeing jets have been announced in deals with Indonesia and Japan this month, as well as Bahrain, the United Arab Emirates, Saudi Arabia and Qatar earlier in the year.

“Ever since his first term, his trade deals have generally involved these kinds of purchase agreements,” said Bruce Hirsh, a trade policy expert at Capitol Counsel, a lobbying firm in Washington that has clients in the aerospace industry. “Our trading partners know this, so they're looking for these kinds of big-ticket items that they can offer to purchase.”

Some aviation analysts are sceptical that US trade negotiators had to twist arms to persuade countries to buy Boeing planes. Airlines, including those controlled by foreign governments, plan such expensive purchases carefully and over months, if not years. Moreover, airlines have few choices, since Boeing and Airbus of France are the only two suppliers of large commercial jets.

Still, those experts said, it was not surprising that Trump and his aides have made a point of highlighting new Boeing orders as part of their trade deals. The company employs tens of thousands of Americans and is one of the country’s top exporters.

Wall Street has also taken note of the announcement of new orders, and Boeing's share price has climbed steadily since early April, when Trump announced steep new tariffs on many countries.