British Airways boss buys 32 Boeing Dream Clothing, 21 Airbus planes after US-UK Trade Deal breakout
British Airways parent International Airlines Group (IAG), announced a major aircraft order that follows a newly announced trade agreement between the United States and the United Kingdom.
According to multiple reports, IAG confirmed on Friday that it had purchased 32 Boeing 787-10 Dreamliner aircraft for its British Airways fleet. The $10 billion deal is seen as a direct push to U.S. manufacturing, days after the trade deal eases tariffs in the aviation sector.
Airbus orders are also confirmed
In addition to the Boeing agreement, IAG has also disclosed orders for 21 Airbus aircraft, which are destined to be its other airlines. While the Boeing will be powered by a general-purpose electric engine, Airbus will be equipped with a British-made Rolls-Royce engine.
Trade deal Spurs investment
The aviation order follows a US-UK trade agreement that cuts tariffs on a range of goods. British labor leader Sir Keir Starmer praised the deal, especially the elimination of tariffs on aircraft engines and aircraft parts, a key victory for the aerospace industry.
U.S. Commerce Secretary Howard Lutnick confirmed that “aircraft engines and other aircraft parts are now excluded from trade tariffs”, which marked a major shift from early policies.
Trump’s relief after tariffs
The order marked a shift in early trade tensions when Donald Trump imposed a 10% blanket tariff on British goods in April. The new deal cuts tariffs on UK cars from 27.5% to 10% and eliminates 25% of steel tariffs altogether.
Trump announces U.S.-Mexico trade deal
U.S. President Donald Trump released a new trade deal with the UK on May 8, calling it a “maximization” deal that aims to boost U.S. exports. The deal lowered UK tariffs on U.S. goods such as beef and ethanol and reduced U.S. tariffs on UK cars from 25% to 10%, although there is still a 10% baseline tariff.
British Ambassador Peter Mandelson called it the “starting point” for deeper trade relations, and Trump said the deal is flexible and will expand with growth.
