Will 50% US Tariff Ground Bombardier Global Express Jets and Canadian Aerospace?

The threat of a 50 percent tariff Canadian aircraft imports has shaken the North American aerospace sector.

U.S. President Donald Trump posted the warning on social media. This is the latest move in an escalating trade war with Canadian Prime Minister Mark Carney. The President earlier warned of a 100 percent tariff on Canadian goods. That threat was tied to a potential Canadian trade deal with China.

Retaliation and the Tariff Threat

President Trump stated the new tariff is retaliation. He claims Canada refused to certify jets from Gulfstream Aerospace, based in Savannah, Georgia. Trump's post promised a 50 percent tariff on "any and all aircraft sold into the United States of America." The situation must be immediately corrected, he stated.

He specifically mentioned "decertifying" Bombardier's Global Express business jets. Data from Cirium shows about 150 of these aircraft are registered in the United States. These jets are currently operated by 115 different companies. Blocking access to the U.S. market would be a significant blow. Bombardier, a Quebec-based company, now focuses heavily on business and private jets.

Precedent in the Aerospace Trade Dispute

This is not the first aerospace trade dispute between the two nations. The U.S. Commerce Department imposed duties on a Bombardier passenger jet in 2017. The department claimed the company used unfair government subsidies. They alleged the planes were sold in the U.S. for less than production cost. However, the U.S. International Trade Commission (USITC) later ruled against this finding. The USITC determined that Bombardier did not harm the American industry. That ruling prevented the imposition of nearly 300 percent duties.

International Trade Agreements at Risk

The tariff threat directly challenges a long-standing international framework. Both the U.S. and Canada are signatories to the 1980 World Trade Organization agreement. This pact, the Agreement on Trade in Civil Aircraft, eliminates duties on civil aircraft, engines, and parts. The agreement aims to create a free trade zone in the aerospace sector.

Treasury Secretary Scott Bessent warned Prime Minister Carney this week. He noted that public criticism of U.S. trade policy could have negative consequences. This is especially true as a formal review of the US-Mexico-Canada Agreement review begins. The USMCA helps shield Canada from the worst effects of broad tariffs.

Impact on the Canadian Aerospace Industry

Canada's Canadian aerospace industry relies heavily on the U.S. market. The U.S. is the largest market for Canadian aerospace exports. This includes aircraft, components, and space technology. The two nations' aerospace industries are closely linked, officials have noted.

Other major Canadian aircraft makers are also at risk. De Havilland Aircraft of Canada builds turboprop planes. Airbus, a European company, produces its A220 passenger jets and helicopters in Canada. A 50 percent tariff on Canada US aircraft tariff would affect all these manufacturers. It raises production costs and procurement costs for airlines.

This latest move adds significant uncertainty to the business jet market access. Stakeholders are now closely monitoring the USMCA review process. The outcome will likely determine the future of duty-free aerospace trade.

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