Aircraft Orders & Deliveries
Bangladesh Orders 25 Boeing Planes to Offset US Tariff Impact
Bangladesh plans to buy 25 Boeing jets and increase US agricultural imports to address a 35% tariff on its exports starting August 2025.
Bangladesh Orders 25 Boeing Planes Amid US Tariff Pressure: Strategic Trade Maneuvering
In a strategic move to ease escalating trade tensions with the United States, Bangladesh has announced plans to purchase 25 Boeing aircraft and significantly increase its imports of American agricultural products. This decision comes in response to a newly imposed 35% tariff on Bangladeshi goods by the Trump administration, effective August 1, 2025. With a trade deficit of $6.2 billion favoring Bangladesh, the US has turned to reciprocal tariffs to push for more balanced trade relationships.
The stakes are particularly high for Bangladesh, whose economy heavily depends on exports, especially in the garment sector, which accounts for over 80% of its foreign income. With millions of jobs on the line, particularly for women, the government is under pressure to act swiftly. The Boeing aircraft order, along with increased wheat, cotton, and soybean oil imports from the US, is part of a broader strategy to demonstrate goodwill and reduce the trade imbalance.
This article explores the background of the US tariff policy, Bangladesh’s economic vulnerabilities, recent strategic developments, expert opinions, and the broader global context of trade realignment under reciprocal tariff regimes.
Background: US Reciprocal Tariffs and Bangladesh’s Economic Vulnerability
The Trump administration’s reciprocal tariff policy, introduced in April 2025, aims to address trade imbalances by imposing equal or higher tariffs on countries that maintain significant trade surpluses with the United States. For Bangladesh, this has translated into a 35% tariff on all exports to the US, a sharp increase from the previous average of 15%.
Bangladesh exported $8.4 billion worth of goods to the US in 2024, primarily garments, textiles, and leather products. In contrast, it imported only $2.2 billion in goods from the US, resulting in a $6.2 billion trade surplus in Bangladesh’s favor. This imbalance has made the country a target for the new tariff policy.
The impact of these tariffs could be profound. The garment sector alone employs over 4 million workers, 60% of whom are women. A 35% tariff could lead to a significant drop in orders from US buyers, threatening livelihoods and reversing decades of social gains made through female employment and education.
Trade Deficit and Sectoral Exposure
Bangladesh’s economic model has long relied on low-cost garment manufacturing for export. The US is a critical market, accounting for 16% of the country’s total exports. The new tariff regime puts that model at risk. Compounding the issue is Bangladesh’s relatively slow diplomatic response compared to peers like Vietnam, which secured a reduced 20% tariff by eliminating its own tariffs on US goods.
This delay has left Bangladesh exposed. While other countries acted swiftly with strategic concessions, Bangladesh’s initial response was viewed as reactive rather than proactive. As a result, the country now finds itself negotiating from a weaker position, with limited time before the tariffs take effect.
The urgency has prompted a flurry of activity, including high-level diplomatic visits to Washington and a series of trade concessions aimed at demonstrating Bangladesh’s willingness to rebalance trade relations with the US.
“We’ve placed an order for 25 Boeing aircraft. Vietnam and India have done the same… We do not believe the US will impose a higher duty on us compared to our competitors.” — Commerce Secretary Mahbubur Rahman
Strategic Responses: Boeing Orders and Agricultural Imports
In a bid to demonstrate commitment to US trade interests, Bangladesh has expanded its Boeing order from 14 to 25 aircraft. This mirrors similar moves by countries like India and Vietnam, both of which used large aircraft purchases to negotiate lower tariffs and secure strategic trade partnerships with the US.
The order is not yet finalized and awaits approval from Bangladesh’s cabinet committee. Nevertheless, the announcement has been positioned as a key bargaining chip in ongoing trade negotiations. The aircraft will also support Bangladesh’s growing aviation sector, aligning with long-term infrastructure goals.
However, delivery timelines remain uncertain due to global demand pressures on Boeing. Analysts warn that while the order is symbolically significant, its actual economic impact will depend on follow-through and integration into broader trade policy shifts.
Boosting Agricultural Imports
Alongside the aircraft order, Bangladesh has committed to increasing imports of American agricultural products. A notable development is a five-year agreement to import 700,000 tons of wheat annually from the US, valued at approximately $1.8 billion. This move is expected to reduce reliance on traditional suppliers like India and Australia.
Additionally, Bangladesh aims to revive its cotton trade with the US, targeting a return to $1.8 billion in annual imports. Soybean oil imports are also set to rise, benefiting American agribusinesses such as ADM and Cargill. These steps are part of a broader effort to diversify Bangladesh’s import sources and align more closely with US trade priorities.
These agricultural deals not only help reduce the trade deficit but also serve as goodwill gestures in ongoing negotiations. They reflect Bangladesh’s willingness to engage in reciprocal trade practices and adapt to shifting global dynamics.
Diplomatic Engagement and Trade Talks
A high-level Bangladeshi delegation, including Commerce Adviser Sk Bashir Uddin, has traveled to Washington to engage directly with the Office of the United States Trade Representative (USTR). Their goal is to negotiate a tariff rate lower than Vietnam’s 20% and India’s 26%, leveraging recent trade concessions as evidence of good faith.
The delegation is offering additional incentives, including tariff cuts on US goods entering Bangladesh, increased energy sector investments, and further agricultural import commitments. These negotiations are ongoing, with both sides seeking a resolution before the August 1 deadline.
Observers note that while Bangladesh is playing catch-up diplomatically, its recent actions may help avert the most damaging outcomes. The success of these talks will likely hinge on the perceived sincerity and strategic value of Bangladesh’s trade offerings.
Global Context: Trade Realignment and Comparative Strategies
The imposition of reciprocal tariffs is part of a broader realignment in global trade policy under the Trump administration. Designed to reduce America’s $1.3 trillion trade deficit, the policy has led to widespread tariff hikes on countries with significant surpluses, including Bangladesh, Vietnam, and Indonesia.
Each country has responded differently. Vietnam eliminated tariffs on US goods to secure a 20% rate. Indonesia agreed to import US energy products, resulting in a 32% tariff. India committed to defense and tech deals, achieving a 26% rate. Bangladesh, by contrast, has only recently begun implementing similar strategies.
Bangladesh’s upcoming graduation from Least Developed Country (LDC) status in 2026 adds another layer of complexity. Once graduated, it will lose preferential trade access to markets like the EU and US, making current negotiations even more critical. Analysts suggest that Bangladesh must also diversify export markets, reducing overdependence on the US and exploring opportunities in the EU, ASEAN, and Middle East.
Conclusion
Bangladesh’s decision to order 25 Boeing planes and boost imports of American agricultural goods represents a calculated effort to rebalance its trade relationship with the United States. These moves are part of a broader strategy to avoid the damaging effects of a 35% tariff on its exports, particularly in the garment sector, which underpins much of the country’s economic and social progress.
While the outcome of ongoing negotiations remains uncertain, Bangladesh’s recent actions signal a willingness to engage constructively with US trade demands. The next few weeks will be crucial in determining whether these efforts can secure a more favorable tariff regime and protect the livelihoods of millions who depend on export-driven industries.
FAQ
What is the US tariff on Bangladeshi goods?
A 35% tariff on all Bangladeshi exports to the US, effective August 1, 2025.
Why did Bangladesh order Boeing planes?
To demonstrate trade goodwill and reduce its trade deficit with the US, similar to strategies used by India and Vietnam.
What sectors are most affected by the US tariffs?
The garment sector, which employs over 4 million people and accounts for 80% of Bangladesh’s export revenue.
Is the Boeing order finalized?
Not yet. It awaits approval from Bangladesh’s cabinet committee.
What other steps is Bangladesh taking?
Increasing imports of US wheat, cotton, and soybean oil; engaging in direct trade negotiations with the USTR.
Sources: Reuters, NewsOnAir, Dhaka Tribune, TBS News, VoxDev, White House
Photo Credit: Boeing – Montage
Aircraft Orders & Deliveries
Luxair Orders Boeing 737-10 Jets at Farnborough 2026
Luxair converts 737-10 options to firm orders at Farnborough 2026, reaching 12 total 737 family aircraft on order.
Luxair has expanded its narrowbody fleet commitment by converting two options for the Boeing 737-10 into firm orders and securing two additional options during the 2026 Farnborough International Airshow.
The July 21, 2026, announcement by The Boeing Company brings the Luxembourg flag carrier’s total firm order book for the 737 family to 12 aircraft. The agreement supports Luxair’s long-term fleet modernization strategy, which focuses on increasing passenger capacity while reducing the airline’s environmental footprint.
Fleet expansion and aircraft specifications
Once all deliveries are completed, Luxair’s Boeing 737 fleet will consist of eight Boeing 737-8s and four Boeing 737-10s. The airline placed its initial order for two 737-10 aircraft in 2024 and is now moving to integrate the new-generation narrowbodies into a network that serves more than 100 destinations across Europe and beyond.
Luxair has selected a 213-seat configuration for its Boeing 737-10 aircraft. The cabin will feature the Boeing Sky Interior with redesigned seats offering a 76 cm pitch. The 737-10 is the largest model in the MAX family, capable of carrying up to 230 passengers in a maximum high-density configuration, with a range of 3,100 nautical miles (5,740 km).
“This agreement represents another important milestone in the execution of our long-term fleet strategy,” said Gilles Feith, Chief Executive Officer of Luxair. “As we continue to grow, delivering an outstanding passenger experience remains at the heart of every fleet decision we make. The Boeing 737-10 provides the additional capacity, operational efficiency and flexibility we need to support future demand while maintaining the high standards of quality, comfort and service our customers expect from Luxair.”
Environmental and operational targets
The integration of the Boeing 737-10 is central to Luxair’s sustainability initiatives. Powered by CFM International LEAP-1B engines, the new aircraft deliver a 20 percent reduction in fuel use and emissions compared to the older generation aircraft they will replace. According to Boeing, each new-generation 737 saves an average of 8 million pounds of carbon dioxide emissions annually.
The operational efficiency of the new fleet is designed to support Luxair’s growth trajectory following a strong performance in 2025, during which the airline transported 2.6 million passengers.
“Both the 737-8 and 737-10 are perfectly suited across Luxair’s network, increasing capacity on to its regional routes, comfortably serving more passengers on more routes with the lowest cost per seat of any single-aisle airplane,” said Ricardo Cavero, Vice President of Europe and Israel Commercial Sales and Marketing for The Boeing Company. “With the selection of the 737-8 and 737-10, Luxair is building a more profitable and sustainable operation.”
AirPro News analysis
Luxair’s decision to convert options into firm orders at the Farnborough International Airshow signals strong confidence in the Boeing 737-10 as the cornerstone of its high-density European routes. By standardizing its future narrowbody growth around the 737-8 and 737-10, we see Luxair prioritizing fleet commonality, which traditionally lowers maintenance and crew training costs. The retention of two new purchase rights also provides the carrier with a low-risk mechanism to secure future delivery slots in a constrained global supply chain environment.
Sources: The Boeing Company
Photo Credit: Boeing
Aircraft Orders & Deliveries
Riyadh Air Orders 31 A350-1000s and 67 Boeing 787s
Riyadh Air firms up A350-1000 and 787 Dreamliner orders at Farnborough 2026, targeting 100 global destinations by 2030.
Saudi Arabian startup carrier Riyadh Air (RX) has expanded its future widebody fleet by firming up an order for six additional Airbus A350-1000 aircraft at the Farnborough International Airshow on July 20, 2026. The agreement exercises purchase rights from a 2025 commitment for up to 50 airframes, bringing the airline’s total firm backlog for the European manufacturer’s largest twin-engine jet to 31 aircraft.
In a press release issued during the airshow, Airbus confirmed the transaction and noted that Riyadh Air will become the first operator of the A350-1000 in Saudi Arabia. The acquisition aligns with the carrier’s mandate to support the national Vision 2030 strategy, which targets serving more than 100 global destinations by the end of the decade.
Expanding the Airbus widebody footprint
The Airbus A350-1000 offers a maximum non-stop range of 9,700 nautical miles (18,000 kilometers), providing the operational capability required for Riyadh Air’s planned ultra-long-haul services. Airbus states the aircraft delivers a 25 percent advantage in fuel burn, operating costs, and carbon emissions compared to previous-generation widebody aircraft.
Riyadh Air Chief Financial Officer Adam Boukadida stated that the finalized order reflects continued confidence in the airline’s growth trajectory and the broader Saudi aviation sector.
“Increasing our A350-1000 commitment to 31 aircraft strengthens the foundation of our future network and supports our ambition to serve more than 100 global destinations by 2030 while delivering a premium guest experience,” Boukadida said.
Airbus Executive Vice President of Sales for Commercial-Aircraft Benoît de Saint-Exupéry added that the commitment highlights the aircraft’s efficiency and range. He noted the A350-1000 will play a central role in positioning Saudi Arabia as a leading international aviation hub. As of the end of June 2026, Airbus had recorded 1,595 firm Orders for the A350 family from 68 customers worldwide.
Concurrent Boeing 787 Dreamliner expansion
The Airbus finalization occurred alongside a separate widebody order placed with The Boeing Company. According to reporting by Al Arabiya, Riyadh Air also confirmed an order for 28 additional Boeing 787 Dreamliner aircraft at the Farnborough event on July 20.
This separate agreement introduces the Boeing 787-10 variant to the carrier’s fleet. Following the announcement, Riyadh Air’s total firm commitment for the Dreamliner family stands at 67 aircraft.
Riyadh Air Chief Executive Officer Tony Douglas told Al Arabiya that the introduction of the 787-10 and the expanded Dreamliner backlog marks another significant milestone in the airline’s journey toward its 2030 network goals. The carrier recently opened ticket sales for its initial overseas routes as it prepares for the launch of commercial operations.
AirPro News analysis
We view Riyadh Air’s dual widebody orders at Farnborough as a clear signal of the carrier’s aggressive timeline and robust capital backing. By splitting its high-capacity, long-haul requirements between the Airbus A350-1000 and the Boeing 787-10, the airline mitigates delivery risk in an era of constrained aerospace supply chains. Securing 31 firm A350-1000s and 67 Boeing 787s provides the necessary metal to rapidly scale a global network from scratch. However, the operational complexity of inducting two distinct widebody types simultaneously will require substantial training, tooling, and maintenance infrastructure investments prior to the Launch of commercial flights.
Sources: Airbus
Photo Credit: Airbus
Aircraft Orders & Deliveries
SMBC Aviation Capital Orders 200 Aircraft at Farnborough 2026
SMBC Aviation Capital placed firm orders for 100 A320neo family and 100 Boeing 737 MAX jets at Farnborough Airshow 2026.
Aircraft lessor SMBC Aviation Capital secured a massive dual-manufacturer commitment at the Farnborough International Airshow on July 20, 2026, placing firm orders for 100 Airbus A320neo family aircraft and 100 Boeing 737 MAX jets.
The 200-aircraft acquisition guarantees the lessor a steady stream of narrowbody deliveries into the mid-2030s. This strategic move comes as the broader aviation industry continues to grapple with persistent supply-chain bottlenecks that have constrained production rates at both major airframers.
Airbus narrowbody commitments
In a press release issued during the airshow, Airbus confirmed the firm order consists of 65 Airbus A321neo and 35 Airbus A320neo aircraft. The agreement pushes the total number of direct Airbus commitments from SMBC Aviation Capital and its parent company, Sumitomo Corporation, past 900 aircraft.
Airbus Executive Vice President of Sales for Commercial Aircraft Benoît de Saint-Exupéry highlighted the long-standing relationship between the manufacturer and the lessor.
“We are honoured to stand with SMBC Aviation Capital as they place this order for additional A320neo family aircraft, the world’s most leased and most traded aircraft making it the benchmark for airlines, lessors and investors alike,” de Saint-Exupéry stated.
Boeing 737 MAX and CFM engine agreements
Concurrently, SMBC Aviation Capital announced a matching commitment with Boeing for 100 narrowbody aircraft. The lessor’s official statement detailed a split of 60 Boeing 737 MAX 10 and 40 Boeing 737 MAX 8 jets.
To power the newly ordered Airbus fleet, SMBC Aviation Capital also secured an agreement for up to 90 CFM International LEAP-1A engines.
SMBC Aviation Capital Chief Executive Officer Peter Barrett emphasized the necessity of securing long-term availability for the company’s airline clients.
“This significant new order will give our airline customers access to a continuous delivery pipeline of the latest technology A320neo family aircraft into the mid-2030s,” Barrett said.
He added that the order reflects the lessor’s confidence in the sustained demand for the A320neo family. Deliveries for the newly ordered Airbus aircraft are expected to commence in the first half of the 2030s.
AirPro News analysis
We view SMBC Aviation Capital’s balanced 200-aircraft acquisition as a direct response to the current manufacturing environment. By splitting the order evenly between the Airbus A320neo family and the Boeing 737 MAX, the lessor is effectively hedging its delivery risks. Industry reporting from the 2026 Farnborough International Airshow indicates that total dealmaking may fall short of the ambitious 800-aircraft expectations held by some analysts, largely due to ongoing production bottlenecks at both Airbus and Boeing.
In an environment where near-term delivery slots are virtually nonexistent, securing a pipeline that stretches into the mid-2030s is critical for major lessors. Airline customers are increasingly reliant on lessors to provide capacity growth and fleet renewal options when direct manufacturer orders face multi-year backlogs. The inclusion of 60 Boeing 737 MAX 10s and 65 Airbus A321neos also underscores a continued market shift toward the largest variants of both narrowbody families, maximizing seat capacity in slot-constrained airports.
Sources: Airbus
Photo Credit: Airbus
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