Trump threatens 50% tariff on Bombardier aircraft exports to Canada

US President Donald Trump has issued a statement on social media, threatening to decertify Bombardier’s large-cabin planes “and all Aircraft made in Canada” unless Canada certifies the latest aircraft produced by US rival Gulfstream. As a result, shares of Canadian aircraft manufacturer Bombardier have declined by 9% on Friday morning.

According to Trump’s statement, he will impose a 50% import tariff on new planes until the certification is obtained. A White House official has clarified that this does not apply to existing Canadian-built planes in operation. The announcement has caused concern among airlines, aviation analysts, and private jet owners who own or are interested in purchasing Bombardier planes.

The threat also raises broader tensions between Canada and the US, following comments from Canadian Prime Minister Mark Carney last week regarding the rules-based global order. Trump’s statement is part of a larger trade dispute between the two countries, which has largely avoided aircraft and aerospace parts.

Bombardier has stated that it is in contact with the Canadian government regarding the situation and employs over 3,000 people in the US across nine major facilities, creating thousands of US jobs through suppliers. The company operates numerous aircraft made in Canada, including narrow-body jets, regional jets, and helicopters, which are used by airlines such as American Airlines and Delta Air Lines.

The impact of Trump’s statement on air traffic and the flying public is being closely monitored, with Bombardier expressing hope that the situation can be resolved quickly to minimize disruption.

Source: Al Jazeera