Canada approves latest Gulfstream business jets after Trump tariff threat

Canadian regulators have approved Gulfstream’s latest business jets, the G700 and G800, ending a certification standoff that recently drew threats of retaliatory tariffs from U.S. President Donald Trump.

Transport Canada added the American-made luxury aircraft to its certification database on Monday, with a spokesperson for Canada’s transport minister confirming the approval on Tuesday. The certification comes approximately one week after Canadian authorities also greenlit two older Gulfstream models.

The approval marks a resolution to what had become a high-profile trade dispute between the neighboring countries. Last month, Trump threatened to decertify all Canadian-built aircraft and impose a 50% tariff unless Canada approved the Gulfstream business jets, specifically targeting Montreal-based Bombardier Inc., Canada’s largest aircraft manufacturer.

“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 a social media post that escalated trade tensions between the two nations.

The certification process had been complicated by deicing concerns identified by the U.S. Federal Aviation Administration (FAA), which earlier this year granted only conditional certification to both the G700 and G800 models. According to FAA documentation, Gulfstream, a subsidiary of General Dynamics, has until the end of 2024 to demonstrate that both aircraft function properly in conditions where ice may form in the fuel system.

Despite these ongoing technical requirements in the U.S., Transport Canada has now fully certified the aircraft for operation in Canadian airspace.

The dispute highlights the competitive dynamics in the high-end business jet market, where Bombardier’s Global series directly competes with Gulfstream’s premium offerings for wealthy clients and corporations. Both manufacturers have invested billions in developing ultra-long-range business jets capable of connecting distant global financial centers without refueling.

Industry experts note that the certification impasse created an unusual intersection of aviation safety regulations and international trade politics. John Gradek, an aviation management professor at Montreal’s McGill University, emphasized that aircraft certification is fundamentally a safety matter, and using decertification as a trade negotiation tactic would be unprecedented in the industry.

The timing of Canada’s approval has raised questions about whether regulatory decisions were influenced by political pressure. Traditionally, aviation authorities base certification decisions solely on technical and safety considerations, operating independently from trade disputes.

The North American aviation industry represents a deeply integrated market worth billions in cross-border trade annually. Canadian aerospace manufacturers, including Bombardier, rely heavily on access to the U.S. market, while American manufacturers like Gulfstream count on international certifications to sell their products globally.

For Gulfstream, based in Savannah, Georgia, the Canadian approval removes a significant barrier to selling their newest flagship aircraft to Canadian customers. The G700 and G800 represent the pinnacle of the company’s product line, featuring extended range capabilities and luxurious cabin appointments aimed at ultra-high-net-worth individuals and multinational corporations.

This resolution comes amid broader trade tensions between the U.S. and Canada that have included disputes over dairy products, lumber, and automotive manufacturing in recent years. The aircraft certification issue represents just one facet of the complex trade relationship between the world’s largest trading partners.

Aviation industry analysts suggest that this certification standoff, while now resolved, reflects the increasing politicization of regulatory processes that have traditionally been insulated from trade disputes. The episode serves as a reminder of how quickly technical matters can become bargaining chips in international trade negotiations.