Shares of Bombardier, a prominent Canadian aircraft manufacturer, have taken a significant hit following President Donald Trump’s recent threats regarding the certification of its large-cabin planes. He asserted that if Canada did not certify the latest models from US competitor Gulfstream, he would decertify all aircraft built in Canada and impose a staggering 50% import tariff on them. This announcement sent Bombardier’s stock plummeting by 9% early on Friday.

Confusion in the Aviation Industry

While a White House official clarified that Trump did not mean to decertify Canadian planes already in operation, his remarks raised concerns among airlines, aviation experts, and private jet owners. Trump took to Truth Social to express his stance: “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.”

Amanda Applegate, a lawyer specializing in business aviation, revealed that her clients had begun to reach out with questions regarding the implications of Trump’s statements for potential Bombardier aircraft purchases.

Ongoing Tensions Between the US and Canada

These developments come amidst broader tensions between the neighboring countries. Canadian Prime Minister Mark Carney recently urged nations to acknowledge an end to the rules-based global order that the US had long supported, highlighting escalating trade policy disagreements.

Interestingly, aircraft and aerospace parts have largely avoided the worst effects of Trump’s ongoing trade policies, continuing to flow across the border under the USMCA trade agreement.

The Impact of Trump’s Threats

Trump indicated he would move to decertify Bombardier’s Global Express jets, which could notably disrupt US carriers such as American Airlines and Delta Air Lines, who depend on Canadian aircraft for many regional services. The US remains the largest market for business aviation, and any change to this status quo could have far-reaching repercussions.

According to data provider Cirium, there are currently 150 Global Express aircraft operating in the US, utilized by 115 different operators. A broader total of 5,425 Canadian-made aircraft, including narrow-body jets, regional jets, and helicopters, operate under US registration.

Bombardier’s Response

In light of Trump’s statements, Bombardier issued a brief response, confirming they were in discussions with the Canadian government and had “taken note” of the situation. The company highlighted its significant presence in the US, with over 3,000 employees across nine facilities and thousands more jobs supported through 2,800 suppliers. They emphasized, “Thousands of private and civilian jets built in Canada fly in the US every day. We hope this is quickly resolved to avoid a significant impact on air traffic and the flying public.”