Will a 50% tariff on Canadian aircraft ground Bombardier Global Express jets in the US?

U.S. President Donald Trump has threatened to impose a 50 percent aircraft tariff on all Canadian-made aircraft sold into the United States. The warning was posted on social media, marking the latest move in escalating trade tensions with Canada. The President also threatened to "decertify" Bombardier Global Express business jets. This action would severely impact the Quebec-based manufacturer. The threat is reportedly retaliation for Canada refusing to certify jets from Savannah, Georgia-based Gulfstream Aerospace jets.

"If, for any reason, this situation is not immediately corrected, I am going to charge Canada a 50 percent Tariff on any and all Aircraft sold into the United States of America," the President stated. The threat of an import duty and the aircraft decertification threat have caused alarm across the highly integrated US-Canada aerospace trade sector.

Potential Industry Impact

Experts question the President’s authority to unilaterally decertify aircraft. Certification is typically a technical process handled by the FAA and Transport Canada. A White House official later suggested the action would only apply to new planes, not those already operating.

However, the potential scope of the tariff is vast. Aviation data firm Cirium reports approximately 150 Bombardier Global Express aircraft are currently registered in the U.S.. These jets are operated by 115 different companies, highlighting the broad reach of the threat.

Broader Scope of Canadian-Made Aircraft

The tariff threat extends beyond business jets. The Canadian aerospace industry is a major global player. Other Canadian-made aircraft potentially affected include:

• Airbus A220 passenger jets, which are produced in Mirabel, Quebec, and flown by U.S. airlines like Delta Air Lines and JetBlue.
• Bombardier CRJ regional jets, which remain a core part of U.S. regional airline fleets.
• Aircraft from De Havilland Aircraft of Canada, which manufactures turboprop planes for patrol and surveillance.

Cirium data shows over 5,400 Canadian-made aircraft are registered in the U.S.. A broad tariff could significantly disrupt U.S. air traffic and regional connectivity.

Historical Trade Tensions and Agreements

This is not the first trade dispute involving Canadian aircraft. In 2017, the U.S. Commerce Department imposed duties of nearly 300% on a Bombardier passenger jet. This was based on claims of unfair government subsidies.

However, the U.S. International Trade Commission (ITC) later ruled against the duties. The ITC found that the U.S. industry was not harmed by the sales.

International Trade Framework

The U.S. and Canada are bound by several trade agreements. The aerospace sector is highly integrated, with supply chains crossing the border frequently.

Canada is a signatory to the World Trade Organization (WTO) Agreement on Trade in Civil Aircraft. This agreement requires member countries to remove tariffs on civilian aircraft, engines, simulators, and related parts. Furthermore, the U.S.–Mexico–Canada Agreement (USMCA trade deal) provides a framework that helps shield Canada from the worst effects of broad tariffs. The current threat comes as a formal review of the USMCA begins.

Bombardier employs over 3,000 people in the U.S. across nine major facilities. The company noted it creates thousands of U.S. jobs through its supply chain. Stakeholders are urging for a quick resolution to avoid major economic and operational consequences.

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