Boeing is the US government's favorite trade talk tool

Tue, Jun 3, 2025, 3:02 AM 2 min read

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When a trade war can't be avoided, it helps to be a favored negotiating device in corporate form.

That's increasingly true for Boeing (BA), a company that until very recently was troubled by its own blunders, but appears to be entering a post-midair-door-blowout phase.

Boeing has emerged as the USe government's favorite trade talk tool. It's fresh off deals with several Gulf states, the UK, and a (precarious) relaxation of restrictions with China. Shares are up over 20% for the year.

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On Monday, Bank of America analysts led by Ronald Epstein upgraded Boeing to Buy in part on the company becoming the White House's preferred trade instrument, "setting a precedent for future global trade negotiations" that will continue to boost the aerospace manufacturer.

Similar to the bullish case for Nvidia, Boeing benefits from the trade war not because of the tariffs themselves, but because the company's strategic importance to the US government creates openings for dealmaking where its products become bargaining chips. (Boeing securing aircraft orders in foreign markets, and Nvidia getting to sell restricted computer chips in negotiations with Beijing.)

The inklings of a comeback, boosted by its importance in the trade war, highlight just how far Boeing's standing has fallen. High-profile crash investigations and a widely covered door mishap tarnished the company's reputation. Boeing was hit further by production delays and a broader critique that corporate leaders had sacrificed a legacy of engineering excellence for financial shortcutting. Last year, the Wall Street Journal's Greg Ip described the company's troubles as a national emergency.

That Boeing holds such significance — as a major ticker and a symbol of American power — helps explain why the company is being used as a game piece, and how further efforts to bind its corporate fate with government policy can propel the turnaround.

Its legal troubles may be subsiding too. Last month, the Justice Department reached a deal with Boeing allowing the plane maker to avoid prosecution in a fraud case stemming from two fatal 737 MAX plane crashes.

But the company's shift beyond crisis mode is still tenuous. "Even with all the positive data points, trust between BA and its shareholders, customers and regulatory agencies is extremely fragile," the Bank of America analysts said.