Trump threatens Canada with 50% aircraft tariff over jet certification
What's the story
United States President Donald Trump has threatened to impose a 50% tariff on all aircraft sold in the US by Canada. The move follows Canada's refusal to certify Gulfstream 500, 600, 700, and 800 jets made by Gulfstream Aerospace, a Savannah, Georgia-based company. "If 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," Trump wrote on his social media platform Truth Social.
Retaliatory measures
US to decertify all Canadian aircraft
In addition to the tariff threat, Trump said the US would also decertify all Canadian aircraft. This includes planes made by Bombardier, Canada's largest aircraft manufacturer. He had earlier warned Canada against deepening trade ties with China, calling it "very dangerous." The latest move is seen as a retaliation for Canada's refusal to certify Gulfstream jets, with additional concerns about Canada's trade ties with China.
Trade history
Previous trade disputes and impacts on Bombardier
This isn't the first time Trump has clashed with Canada over trade. In 2017, his administration imposed duties on a Bombardier passenger jet, alleging it was sold below cost with government support. However, this decision was overturned by the US International Trade Commission. The current dispute could severely impact Bombardier as media reports quoted analysts as saying that losing access to the US market would be detrimental for the Quebec-based firm.
Trade talks
Canada's response and ongoing trade negotiations
A report by Reuters quotes data provider Cirium as stating that a total of 5,425 aircraft of various types made in Canada are in service, registered in the US. Meanwhile, Canada's transport ministry and Bombardier have not yet commented on the matter. The dispute comes as the US prepares for a formal review of the US-Mexico-Canada Agreement (USMCA). Treasury Secretary Scott Bessent has warned Canadian officials that public criticism of US trade policy could hurt Canada's position in ongoing negotiations.