Bombardier shares plummet amid fears of a 50% tariff on Canadian aircraft following Trump’s statements.
In an unexpected escalation of trade tensions, President Donald Trump has threatened major repercussions for the Canadian aviation sector, focusing on Bombardier and its large-cabin jets. As the intricacies of international trade come to the forefront, this situation reshapes the landscape for both Canadian manufacturers and U.S. airlines that rely heavily on these aircraft. With the potential for heavy tariffs looming, the implications for the North American aerospace market could prove significant for industries and consumers alike.
Shares of Canadian aeroplane manufacturer Bombardier experienced a sharp decline following statements from U.S. President Donald Trump, who threatened to decertify the company’s large-cabin jets and potentially impose a staggering 50 percent import tariff on all aircraft produced in Canada. This warning came late Thursday and led to a 9 percent drop in Bombardier’s stock price on Friday morning.
While a White House official clarified that the president’s comments were not intended to retroactively decertify existing Canadian-built aircraft, ambiguity surrounding Trump’s remarks sparked concern among airlines, aviation analysts, and private jet owners. In a post on his social media platform Truth Social, Trump stated that he would impose a 50 percent tariff on any aircraft sold to the United States unless Canada certified the latest models from U.S. competitor Gulfstream.
Legal experts such as Amanda Applegate, who specializes in aviation law, reported a surge of inquiries from clients interested in Bombardier planes following Trump’s announcement. Tensions have also escalated between the U.S. and Canada in light of Canadian Prime Minister Mark Carney’s recent remarks urging global unity against U.S. trade policies which he believes disrupt the established rules-based global order.
Despite the contentious environment, aircraft and aerospace parts have generally avoided the most severe impacts of Trump’s trade policies under the United States-Mexico-Canada Agreement (USMCA). Trump’s latest threat could still profoundly affect U.S. airlines, including American Airlines and Delta Air Lines, which depend on Canadian jets for many regional operations.
Data from Cirium highlights that approximately 150 Bombardier Global Express aircraft are currently in service in the U.S., operated by 115 entities, while a total of 5,425 aircraft produced in Canada are registered and operational across the country, including a variety of jets and helicopters.
A spokesperson for Bombardier emphasized the company’s foothold in the U.S. market, stating that it employs over 3,000 people within the United States and supports thousands of suppliers. The company expressed its hope for a swift resolution to avert significant disruptions to air travel and the aviation community.
As the situation continues to unfold, it remains crucial for both nations to navigate these complexities to maintain their strong trade relationships in the aviation sector.
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