Trump's 50% Tariff Threat on Bombardier Jets Sparks Canadian Trade Shift
Aviation News Editor & Industry Analyst delivering clear coverage for a worldwide audience.
US President Trump threatened 50% tariffs on Canadian aircraft and decertification of Bombardier Global jets, pushing Canada toward new trade partners.
Key Takeaways
- •US President Trump threatened 50% tariffs on Canadian aircraft and decertification of Bombardier Global jets on January 29, 2026.
- •The threat aims to force Transport Canada to certify rival Gulfstream business jets, which the regulator delayed over reported fuel-icing concerns.
- •Following the threat, Canada announced Prime Minister Mark Carney would travel to India in March to sign a new bilateral trade deal.
- •The dispute is part of a broader trend where US trade partners (EU, India, Mercosur) are accelerating trade diversification efforts.
The global aerospace industry is reacting to a major trade escalation. U.S. President Donald Trump recently threatened severe measures against Canada's aviation sector. The threat targets Bombardier Global business jets and all Canadian-made aircraft. This action is a direct response to an ongoing certification dispute.
The Certification Standoff
President Trump warned the U.S. would decertify Bombardier's jets. He also threatened a 50 percent import tariff on all Canadian aircraft. This would remain until Canada's regulator certifies jets from U.S. rival Gulfstream. Specifically, the dispute involves several Gulfstream G-series models. Transport Canada has reportedly delayed certification for safety reasons. These reasons include potential fuel-icing risks at high altitudes. The U.S. Federal Aviation Administration (FAA) has already certified the aircraft. However, Canadian authorities insist on full technical testing. This is partly due to increased scrutiny after the Boeing 737 MAX crisis.
Industry Impact and Risk
The threat of decertification sent shockwaves through the market. Shares of Canadian manufacturer Bombardier immediately dropped by 9%. Experts question the feasibility of the decertification threat. Decertification is typically reserved for safety concerns, not trade disputes. However, the 50% tariff threat is a more immediate concern.
- Decertification Risk: If carried out, it could ground Bombardier jets in the U.S.. This would drastically impact U.S. business aviation operators.
- Supply Chain Disruption: Bombardier aircraft use many U.S.-sourced components. Tariffs or production cuts would harm American suppliers and jobs.
- Regional Airline Reliance: U.S. regional carriers rely heavily on Canadian-made aircraft. Any disruption would affect air traffic and the flying public.
Global Trade Diversification
This aggressive trade policy pushes allies to seek new partners. Many U.S. trade partners are now diversifying their economies. They seek protection from the president's impulsive tariff actions. Former U.S. trade negotiator Wendy Cutler noted this trend. She stated that trade diversification efforts are on "turbocharge". The goal is to reduce dependence on the newly protectionist U.S.
Canada's Strategic Response
Canada quickly signaled a pivot toward other global markets. Prime Minister Mark Carney announced a trip to India in March. He plans to meet with Prime Minister Narendra Modi. The leaders will discuss a significant oil and uranium sale. Crucially, they intend to sign a new trade deal.
Broader Global Trade Shifts
Other major economies are also moving forward with their own deals. The European Union (EU) and India recently finalized a free trade agreement. This deal followed nearly twenty years of negotiations. The EU also announced a trade deal with the Mercosur nations. This South American bloc includes Brazil and Argentina. This new market will encompass over 700 million people. These actions show a growing global willingness to trade beyond the U.S. market. The dollar's value has already fallen to its lowest level since 2022 against competing currencies. This suggests a diminishing U.S. influence in global trade and finance.
Trusted commercial aviation news and airline industry reporting are available at flying.flights. Get the latest updates on major hubs, regional terminals, and airport operations via the Airports section at flying.flights/airports.
Written by Ujjwal Sukhwani
Aviation News Editor & Industry Analyst delivering clear coverage for a worldwide audience. Covers flight operations, safety regulations, and market trends with expert analysis.
Visit ProfileYou Might Also Like
Discover more aviation news based on similar topics
Nigeria Considers Foreign Carrier Curbs to Boost Local Airlines
Nigeria is reportedly considering restricting foreign airline access to its primary hubs to foster growth for domestic carriers in international markets.
EASA Issues New Maintenance Directive for Airbus BelugaXL Fleet
EASA has issued a new airworthiness directive for the Airbus A330-743L BelugaXL fleet, mandating updated structural integrity inspection schedules.
CBI Seeks to Close Air India Aircraft Leasing Irregularities Case
India's CBI has filed a closure report in the Air India aircraft leasing case, concluding no criminal intent was found in the long-running investigation.
US Airlines Fear EU-Wide Impact from Dublin Airport Cap Ruling
US airlines warn an EU court ruling on Dublin's passenger cap could allow planners across the bloc to unilaterally restrict airport capacity.
House Rejects ROTOR Act Mandating Aircraft Locator Systems
The U.S. House failed to pass the ROTOR Act, a bill requiring collision avoidance systems on all aircraft following last year's fatal midair collision.
US Eliminates 10% Tariff on Brazilian Aircraft Exports After Court Ruling
The US has eliminated a 10% tariff on Brazilian aircraft, a move that levels the playing field for manufacturer Embraer against its global competitors.