Tensions have risen between the United States and Canada after former US President Donald Trump threatened to impose a 50% tariff on aircraft coming from Canada into the US. He said this would be a response to Canada’s reported refusal to approve jets made by Gulfstream Aerospace, a company based in Savannah, Georgia. Trump added that the US could strike back by removing certification for all Canadian-made aircraft, including planes produced by Bombardier.
Trump shared this warning on social media shortly after another strong statement over the weekend. In that post, he said he might place a 100% tariff on Canadian goods if Canada continues with a proposed trade agreement with China.
In his message, Trump wrote, “Canada is effectively prohibiting the sale of Gulfstream products in Canada through this very same certification process,” and further warned, “If, for any reason, this situation is not immediately corrected, I am going to charge Canada a 50% Tariff on any and all Aircraft sold into the United States of America.”
Competition Between Bombardier and Gulfstream
Bombardier, a major Canadian aerospace company, competes closely with Gulfstream in the business jet sector. Bombardier’s Global series jets directly rival Gulfstream’s newest aircraft models in the private jet market.
This is not the first time trade tensions have affected Bombardier. In 2017, during Trump’s earlier term, the US Commerce Department placed duties on one of Bombardier’s passenger aircraft. Officials claimed the company had sold jets in the US at unfairly low prices with support from government subsidies, according to The Associated Press. However, the US International Trade Commission later decided that Bombardier had not damaged American manufacturers.
Since then, Bombardier has shifted its focus mainly to private and business jets, especially its Global and Challenger aircraft lines. These planes are widely used by wealthy individuals, corporations, and shared jet services like NetJets and Flexjet.
Broader Trade Dispute
The situation is part of a larger trade disagreement. US Treasury Secretary Scott Bessent reportedly cautioned Canadian Prime Minister Mark Carney that his public criticism of US trade policy might cause problems as the U.S.-Mexico-Canada Agreement (USMCA) comes up for review. This agreement currently protects Canada from some of the harshest US tariffs.
Carney denied changing his stance during a phone conversation with Trump. He said he stood by the remarks he made at the World Economic Forum in Davos and confirmed that Canada wants to reduce its dependence on the US by working on around a dozen new trade deals.
At the Davos event, Carney spoke against powerful countries using economic pressure on smaller nations, although he did not name Trump directly. His comments received global attention and praise, drawing focus away from Trump at the forum.
Canada’s Aerospace Industry and Trade Rules
Canada’s aerospace sector includes other major companies besides Bombardier. These include De Havilland Aircraft of Canada, known for turboprop and surveillance planes, and Airbus, which also has operations in the country.
During the Biden administration, the US International Trade Administration emphasized how closely the US and Canadian aerospace industries are linked. It referred to a 1980 World Trade Organization agreement that, according to the US trade representative’s website, “requires signatories to eliminate tariffs on civil aircraft, engines, flight simulators, and related parts and components.”
This background shows how Trump’s tariff threat could have serious effects on a highly interconnected industry that has long operated with low or no tariffs between the two countries.
