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Trump threatens 50% tariff on Canadian aircraft sold in US
Trump's threat posted on social media came after he threatened over the weekend to impose a 100% tariff on goods imported from Canada.
Donald Trump threatened Canada with 50% tariff on aircraft sold in US. He said the move was retaliation for Canada’s refusal to certify jets made by Savannah, Georgia-based Gulfstream Aerospace, adding that the US would respond by decertifying all Canadian aircraft, including those built by Bombardier.
Trump's threat posted on social media came after he threatened over the weekend to impose a 100% tariff on goods imported from Canada if it went forward with a planned trade deal with China.
“Canada is effectively prohibiting the sale of Gulfstream products in Canada through this very same certification process,” Trump wrote on Truth Social.
“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.”
Bombardier and Gulfstream compete directly in the business jet market, with Bombardier’s Global series vying for market share against Gulfstream’s latest aircraft.
The US Commerce Department had previously imposed duties on a Bombardier commercial passenger jet in 2017 during Trump’s first term, alleging that the Canadian company was selling aircraft in the United States below cost with the help of unfair government subsidies, according to a report by The Associated Press.
The US International Trade Commission later ruled that Bombardier had not harmed the American industry.
Since then, Bombardier has focused on business and private jets, particularly its Global and Challenger families, which are widely used by private owners, companies and fractional jet operators such as NetJets and Flexjet.
What is happening?
Treasury Secretary Scott Bessent warned Canadian Prime Minister Mark Carney on Wednesday that his recent public criticism of UStrade policy could backfire ahead of the formal review of the U.S.-Mexico-Canada Agreement, which shields Canada from the harshest effects of Trump’s tariffs.
Carney rejected Bessent’s suggestion that he had softened his stance during a phone call with Trump on Monday. He said he told Trump he stood by his remarks at the World Economic Forum in Davos and reiterated Canada’s plan to reduce its reliance on the United States by pursuing a dozen new trade agreements.
At the Davos gathering last week, Carney criticised economic coercion by major powers against smaller countries without naming Trump directly. His comments drew widespread attention and praise, overshadowing Trump at the forum.
Beyond Bombardier, Canada is home to other major aircraft manufacturers, including De Havilland Aircraft of Canada, which produces turboprop and surveillance aircraft, and Airbus.
Under the Biden administration, the USInternational Trade Administration highlighted the close integration of the U.S. and Canadian aerospace sectors, citing a 1980 World Trade Organization agreement that, according to the current U.S. trade representative’s website, “requires signatories to eliminate tariffs on civil aircraft, engines, flight simulators, and related parts and components.”
