Bombardier stock dives on Trump threats of 50% tariff on Canadian planes

Bombardier's stock fell sharply after former U.S. President Trump threatened to decertify the company's planes and impose a 50% tariff on Canadian aircraft imports. The threat, made on Truth Social, was in response to Canada's delay in certifying aircraft produced by U.S. rival Gulfstream. While a White House official clarified that existing Canadian-built planes were not at risk of decertification, the announcement caused concern among airlines, aviation analysts, and Bombardier customers. The potential tariffs and decertification come amid broader trade tensions between the U.S. and Canada, with the Canadian Prime Minister recently criticizing U.S. trade policy. Despite the USMCA trade agreement, aircraft and aerospace parts have now become a point of contention.

President Trump threatened Canada with a 50% tariff on aircraft sold in the U.S., escalating the trade dispute between the two countries. The threat, announced on social media, is in retaliation for Canada's refusal to certify jets from Gulfstream Aerospace, a U.S. company based in Savannah, Georgia. Trump also stated he would decertify all Canadian aircraft, including those from Bombardier, Canada's largest aircraft manufacturer. Bombardier responded that its aircraft are fully certified to FAA standards and expressed hope for a quick resolution to avoid impacting air traffic. An aviation expert noted that decertifying aircraft for trade reasons would be unprecedented, as certification is primarily about safety.