Bombardier inventory dives on Trump threats of fifty% tariff on Canadian planes | Trade War News | USAEMALL.com

Trump threatened decertifying Bombardier’s planes and slapping new tariffs if Canada did not certify US rival planes.

Shares of Canadian aeroplane maker Bombardier have plunged after United States President Donald Trump threatened to decertify the private jet maker’s large-cabin planes “and all Aircraft made in Canada”, and slap 50 percent import tariffs on new planes until Canada certified the latest aircraft produced by US rival Gulfstream.

The aeroplane maker’s stock was down 9 percent Friday morning on the heels of Trump’s late Thursday threats.

While a White House official told the Reuters news agency that Trump was not suggesting decertifying Canadian-built planes currently in operation, the president’s warning on Thursday night caused confusion and alarm among airlines and aviation analysts, along with buyers and owners of private jets.

“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,” Trump said in a post on Truth Social.

Soar Aviation Law lawyer Amanda Applegate, a US specialist in business aviation law, said on Friday the post had prompted queries from clients who own, or want to buy, Bombardier planes.

There are also broader tensions between the neighbouring countries after Canadian Prime Minister Mark Carney, citing US trade policy, last week urged nations to accept the end of the rules-based global order that Washington had once championed.

Aircraft and aerospace parts have largely escaped the brunt of Trump’s US-led trade war, with Canadian-made planes continuing to be exported south of the border under the USMCA trade agreement.

Trump also said he was “decertifying their Bombardier Global Expresses, and all Aircraft made in Canada” until the Gulfstream planes were certified. Gulfstream is owned by General Dynamics.

That threat, if carried out, would have a drastic impact on US carriers like American Airlines and Delta Air Lines, which rely on Canadian-made aeroplanes for many of their regional services. The US is also the world’s largest market for business aviation.

Data provider Cirium has said there are 150 Global Express aircraft in service registered in the US, operated by 115 operators, and a total of 5,425 aircraft of various types made in Canada in service registered in the US, including narrow-body jets, regional jets and helicopters.

In a statement on Thursday, Bombardier said it had “taken note” of Trump’s post and was in contact with the Canadian government. It added that it employs more than 3,000 people in the US across nine major facilities, and creates thousands of US jobs through 2,800 suppliers.

“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 to air traffic and the flying public,” the company said.