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President Donald Trump escalated his trade tensions with Canada on Thursday, threatening to impose a 50% tariff on all Canadian aircraft sold in the United States in what appears to be a rapidly expanding dispute with Prime Minister Mark Carney.
The threat, announced via social media, follows Trump’s earlier warning of a potential 100% tariff on all Canadian imports if the country proceeded with a planned trade agreement with China. This latest aircraft-specific threat targets Canada’s aerospace industry, particularly Montreal-based Bombardier, one of the world’s leading business jet manufacturers.
“If, for any reason, this situation is not immediately corrected, I am going to charge Canada a 50% Tariff on any and all Aircraft sold into the United States of America,” Trump stated in his post, claiming the action was in response to Canada refusing to certify jets from Georgia-based Gulfstream Aerospace.
Trump further declared he was “hereby decertifying” Bombardier Global Express business jets. According to aviation analytics company Cirium, there are currently 150 Global Express aircraft registered in the United States across 115 different operators.
The aerospace industry implications could be significant. Bombardier and Gulfstream are direct competitors in the premium business jet market, with Bombardier’s Global series competing against Gulfstream’s high-end models for the same wealthy clientele. The U.S. market represents a crucial revenue stream for Bombardier’s business jet division.
Bombardier responded with a measured statement, noting they have contacted the Canadian government regarding the situation. The company emphasized that its aircraft fully comply with Federal Aviation Administration certification standards and highlighted its expanding operations in the United States.
“Thousands of private and civilian jets built in Canada fly in the U.S. every day. We hope this is quickly resolved to avoid a significant impact to air traffic and the flying public,” Bombardier stated.
Aviation experts expressed concern about the unprecedented nature of using certification—normally a safety mechanism—as a trade policy weapon. John Gradek, an aviation management professor at McGill University, called the move extraordinary.
“Certification is not trivial. It is a very important step in getting planes to operate safely,” Gradek said. “Decertification for trade reasons does not happen. This is really a smokescreen that’s basically throwing up another red flag in the face of Mr. Carney. This is taking it to the extreme. This is a new salvo in the trade war.”
This isn’t the first time Bombardier has found itself in Trump’s crosshairs. During his previous administration in 2017, the U.S. Commerce Department imposed duties on Bombardier commercial passenger jets, alleging the company sold planes in America below cost using unfair government subsidies. That action was later overturned by the U.S. International Trade Commission.
Since then, Bombardier has refocused its business on the private jet market with its Global and Challenger families. These aircraft are popular not only with individual owners and corporations but also with fractional jet ownership companies like NetJets and Flexjet. Cutting off access to the U.S. market would represent a devastating blow to the Quebec-based manufacturer.
The dispute appears to have deeper roots. Treasury Secretary Scott Bessent recently warned Carney that his public comments criticizing U.S. trade policy could jeopardize the upcoming formal review of the U.S.-Mexico-Canada Agreement (USMCA), the trade deal that currently shields Canada from the full impact of Trump’s tariff threats.
Carney reportedly rejected Bessent’s characterization of a conciliatory phone call with Trump, insisting he stood by comments made at the World Economic Forum in Davos last week. During that speech, Carney condemned economic coercion by larger powers against smaller nations—remarks widely interpreted as a veiled criticism of Trump’s approach to trade.
The Canadian prime minister also reportedly informed Trump that Canada plans to reduce its economic dependence on the United States through a dozen new trade agreements with other partners.
Beyond Bombardier, other significant aircraft manufacturers in Canada include De Havilland Aircraft of Canada and European aerospace giant Airbus, which manufactures its A220 commercial aircraft and helicopters at Canadian facilities. The threatened tariffs could potentially impact these operations as well.
As of Thursday evening, the Canadian government had not issued an official response to Trump’s latest tariff threat.
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7 Comments
This escalation targets a key sector of Canada’s economy. It will be important to see how the Canadian government and industry respond to protect their interests.
Indeed, the aerospace industry is a major part of the Canadian economy. This move could invite retaliation from Canada, further escalating the trade tensions.
While it’s understandable for the US to want a level playing field, such aggressive tariff threats often invite unintended consequences. Hopefully, the two countries can find a diplomatic solution to their trade disputes.
This move by Trump seems like a risky strategy that could backfire. The aerospace industry is a major employer in both the US and Canada. Disrupting trade in this sector could have far-reaching economic consequences.
The ongoing trade war between the US and Canada is concerning. Both countries have a lot to lose if the dispute continues to escalate. Hopefully, cooler heads will prevail and they can reach a mutually beneficial agreement.
Agreed. Retaliatory tariffs rarely end well for anyone. The economic interdependence of the US and Canada means a negotiated settlement is in the best interests of both countries.
Interesting development in the ongoing US-Canada trade dispute. Trump’s threat to impose a 50% tariff on Canadian aircraft sold in the US could significantly impact the aerospace industry on both sides of the border.