US-Canada Aviation Crisis: Will 50% Tariff Ground Bombardier Jets?

The North American aerospace sector faces a major trade challenge.

US President Donald Trump threatened a 50% tariff on Canadian aircraft sales in the US. The threat also included decertification of all Canadian-made aircraft. This move is a significant escalation of US-Canada trade tensions.

The Certification Dispute

The President made the threat on Truth Social late Thursday. He accused Transport Canada (Transport Canada) of illegally refusing to certify several US-made business jets. The jets in question are the Gulfstream G500, G600, G700, and G800 models. The President claimed this refusal effectively blocks Gulfstream sales in Canada.

In retaliation, the US would decertify Bombardier Global Express jets. This action would apply to all aircraft manufactured in Canada. The President warned the 50% tariff would take effect if the situation is not corrected.

Industry and Regulatory Impact

Bombardier (Bombardier) is the primary target of the decertification threat. The Montreal-based manufacturer quickly acknowledged the social media post. They stated they are in contact with the Canadian government. Bombardier also warned of a “significant impact to air traffic and the flying public.” The company highlighted its major US presence, employing over 3,000 workers across nine facilities.

The news sent shockwaves through the aerospace sector. Bombardier's stock fell more than six percent following the threat. The US is a crucial market for Bombardier business jets.

Regulatory Authority Questioned

Experts have raised doubts about the President’s authority to decertify aircraft. Aircraft certification is traditionally the role of the Federal Aviation Administration (Federal Aviation Administration (FAA)). The FAA is the independent body that ensures aircraft safety. Canadian officials, including the Transport Minister, affirmed that certification is a technical process. They emphasized that the process is not politicized. Transport Canada officials are communicating with their US counterparts.

Key Takeaways for Aviation Stakeholders

• 50% Tariff Threat: The proposed tariff would severely impact the competitiveness of Canadian-made aircraft in the US market.
• Decertification Risk: Decertifying the Bombardier Global Express could ground hundreds of aircraft currently operating in the US.
• Trade War Escalation: This move signals a significant escalation in the ongoing trade dispute between the two nations.
• Certification Politicization: Industry leaders worry about mixing political grievances with essential aviation safety certification.

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