Asian Nations to Purchase Boeing Jets As Part of Deals For Reduced US Tariffs
Boeing

Asian Nations to Purchase Boeing Jets As Part of Deals For Reduced US Tariffs

Malaysia reaffirms US$19b purchase of 26 Boeing jets

Malaysia has reaffirmed its commitment to purchase a total of 26 Boeing aircraft in two phases, a deal estimated to be worth close to US$19 billion.

The first phase involves 13 aircraft, valued at US$9.5 billion, with a second phase involving an additional 13 aircraft of similar value. The purchase signals Malaysia’s continued support of bilateral trade ties and aerospace cooperation with the United States, amid broader negotiations on tariffs and market access.

Malaysia also agreed to ease some non-tariff barriers — like streamlining halal and facility registration for US food imports — to help reduce US tariffs on Malaysian goods from 25% to 19%. However, Malaysia rejected US requests to remove excise duties on cars, tobacco, and alcohol to protect national interests.

Japan to buy 100 Boeing planes

Under the terms of the trade deal that Japan agreed to with Washington, Japan’s exports will be taxed at 15% instead of the threatened 25%. Washington has said that Japan will buy 100 Boeing planes in addition to buying US goods such as agricultural produce and aviation fuel.

Crucially, the tariff reduction includes tariffs on automobiles which accounted for 30% of Japanese exports to the US in 2024

Indonesia to buy 50 Boeing jets under Trump’s new trade deal

The US has struck a trade deal with Indonesia under which Indonesian products entering the US will face a 19% tariff, down from the 32% initially threatened by Donald Trump.  In return, Indonesia will purchase 50 Boeing aircraft, along with $15 billion in US energy products and $4.5 billion in agricultural goods.

The national airline, Garuda, plans to expand its fleet by adding about 120 jets and up to 100 routes, domestic and international, in the next five years.

In 2014, Garuda signed a deal with Boeing to buy 50 units of the 737 Max 8, of which only one had been delivered. Fatal crashes involving the plane in 2018 and 2019 forced Garuda to cancel the US$4.8 billion order for the remaining 49 planes and return the one it had to the manufacturer.

Boeing’s safety reputation has taken a hit in Indonesia since a 737 Max 8 jet, operated by Lion Air, crashed into the Java Sea in October 2018, killing all 189 people on board.

Cambodia to acquire 20 Boeing 737 Max aircraft

Cambodia will eliminate import tariffs on US goods and commit to purchasing up to 20 Boeing 737 Max aircraft to reduce the trade imbalance between the two countries.  Cambodia’s national airline, Air Cambodia, is currently negotiating to acquire 10 planes, with an option for an additional 10.

Bangladesh orders 25 Boeing aircraft

Bangladesh secured a reduced 20% US tariff on its exports, down from a proposed 35%, after a third round of negotiations. Last month, Bangladesh placed an order for 25 Boeing aircraft in a move aimed at reducing the tariff on Bangladeshi goods.

Thailand to procure new Boeing aircraft models

In exchange for the US reducing its tariff on Thai goods from a proposed 36% to 19%, Thailand will eliminate its own tariffs on over 10,000 US import items.

Both the Thai public and private sectors are collectively preparing to purchase Liquefied Natural Gas (LNG) from US companies and new Boeing aircraft models. This move is expected to help reduce Thailand’s persistent trade surplus with the United States.

You can read a good analysis on the latest tariff news on BBC.com in an article here:

Trump tariffs on Asia: Which economies were hit hardest?

Sign up to receive FTNnews Newsletter

Subscribe to get the latest travel news by email

We don’t spam! Read our privacy policy for more info.

Search


0 0 votes
Article Rating
Subscribe
Notify of
0 Comments
Oldest
Newest Most Voted
Scroll to Top