Jet orders are expected at Paris Air Show amid tariffs, global turmoil

Despite geopolitical uncertainty, rising tariffs, ongoing supply chain issues and large backlogs, aerospace manufacturers are preparing to present a unified front at the upcoming Paris Air Show, which runs June 16-20 at Le Bourget. The industry’s biggest players plan to spotlight new technologies, from artificial intelligence to autonomous systems, while unveiling major aircraft deals aimed at signaling resilience in the face of instability.

Airbus (OTCPK:EADSF) (OTCPK:EADSY) is expected to make headlines early in the week with a pair of significant deals from Saudi carriers, highlighting the region’s growing air travel appetite, Reuters reported on Thursday. However, the European aircraft giant may face a last-minute challenge from Brazil’s Embraer (NYSE:ERJ), which is said to be vying for a sizable AirAsia order of around 100 A220-sized aircraft.

Boeing (NYSE:BA), while still in the game, is anticipated to have a lower profile during the show after announcing major Gulf orders during U.S. President Donald Trump’s recent diplomatic tour. Still, the American manufacturer is tipped to finalize an important fleet renewal deal with Royal Air Maroc.

Industry copes with volatility

Beyond the flashy announcements and aircraft displays, industry leaders are privately contending with an increasingly volatile operating environment. Civil aviation manufacturers and major defense contractors such as Lockheed Martin (NYSE:LMT) and Raytheon (NYSE:RTX) are closely monitoring the impact of trade tensions and military conflicts.

Although a tentative U.S.-China trade thaw has lifted some of the gloom, the specter of enduring 10% base tariffs lingers. Industry insiders say efforts are ongoing to secure exemptions, but many companies are adjusting to the likelihood that tariffs are here to stay, Reuters reported.

Defense spending surges

Russia’s war in Ukraine and heightened instability in the Middle East have prompted significant changes in defense planning. European countries including Germany, the UK, and Poland are boosting military budgets at levels not seen since the Cold War, with new investments focused on air defense, drones, and next-gen fighter platforms.

This year’s airshow will feature a wide range of unmanned aerial vehicles, including low-cost drones that have demonstrated battlefield value in Ukraine. These systems are becoming critical to modern warfare, offering flexible, lower-cost alternatives to crewed aircraft.

At the same time, Europe’s defense calculus is shifting. With confidence in U.S. security guarantees wavering under Trump-era foreign policy, several countries are re-evaluating their dependence on American systems in favor of building domestic capacity.

Sustainability goals at crossroads

Although environmental concerns will have a presence at the show, they’re unlikely to take center stage this year. Trump’s rollback of green initiatives has muted some of the momentum behind aerospace sustainability efforts.

Airlines recently reaffirmed their long-term goal of achieving net-zero emissions, but progress is being hampered by a lack of sustainable aviation fuel and delays in next-generation aircraft programs. High-profile projects, such as Airbus’ (OTCPK:EADSF) (OTCPK:EADSY) hydrogen-powered aircraft, have slowed or stalled altogether.

For now, manufacturers argue that transitioning to more fuel-efficient models, offering roughly 15% savings over older jets, is the fastest route to reducing emissions. However, ongoing supply disruptions have slowed deliveries, and environmental advocates warn that aggressive sales strategies risk entrenching reliance on fossil fuels for decades to come.

As the nearly $1 trillion global aerospace sector converges on Paris, it does so at a moment defined by innovation, uncertainty, and an urgent need to adapt.