Trump threatens Canada with 50% tariff on aircraft sold in U.S., expanding trade war

President Trump has escalated his trade war with Canada by threatening a 50% tariff on all aircraft sold in the U.S. This move comes in response to Canada’s refusal to certify jets from Gulfstream Aerospace, based in Savannah, Georgia. In a post on Truth Social, President Trump announced that the U.S. would decertify all Canadian aircraft, including those from Bombardier, the largest aircraft maker in Quebec.

The president’s decision to impose tariffs on Canadian aircraft could have significant implications for the aviation industry. Bombardier’s Global Express business jets, along with other Canadian-made aircraft, are widely used in the U.S. There are currently 150 Global Express aircraft in service registered in the U.S., operated by 115 operators. In addition, several U.S. airlines operate Bombardier CRJ regional jets.

In response to President Trump’s announcement, Bombardier stated that they are in contact with the Canadian government and hope for a quick resolution to avoid disruptions to air traffic and the flying public. The company emphasized that thousands of private and civilian jets built in Canada fly in the U.S. on a daily basis. Bombardier also highlighted its significant presence in the U.S., with about 3,000 employees across nine facilities.

This latest trade dispute between the U.S. and Canada is not the first time that Bombardier has been at the center of controversy. In 2017, the U.S. Commerce Department imposed duties on Bombardier’s CSeries commercial passenger jet, alleging that the Canadian company was selling planes in America below cost. However, the U.S. International Trade Commission ruled that Bombardier did not harm U.S. industry.

The feud between President Trump and Canadian Prime Minister Mark Carney has intensified in recent months. President Trump’s threat to impose tariffs on Canadian goods, including aircraft, is part of a broader trade conflict between the two countries. Carney has been critical of U.S. trade policies, leading to tensions between the two leaders.

The aerospace industry is a key sector for both the U.S. and Canada, with close interdependence between the two countries. Canada’s aerospace and space industries rely heavily on trade with the U.S., which is their largest trading partner. The U.S. International Trade Administration has highlighted the importance of the aerospace sector in maintaining strong economic ties between the two countries.

In conclusion, President Trump’s decision to impose tariffs on Canadian aircraft could have far-reaching implications for the aviation industry and trade relations between the U.S. and Canada. Both countries have a vested interest in resolving this dispute and maintaining a strong partnership in the aerospace sector.