On Thursday, President Donald Trump issued a warning to Canada, suggesting a 50% tariff on aircraft sold in the United States. This development comes amid a growing dispute with Prime Minister Mark Carney, marking another chapter in the ongoing trade tensions between the two countries.
Trump’s threat, made via social media, follows his weekend suggestion of imposing 100% tariffs on Canadian imports if the country goes through with a proposed trade agreement with China. However, the President didn’t specify when these tariffs might be enacted, especially since Canada already has an agreement established with the U.S.
This new threat seems to be a reaction to Canada’s refusal to certify a jet from Gulfstream Aerospace, based in Savannah, Georgia. Trump indicated that if this issue isn’t resolved promptly, he intends to proceed with the 50% tariff on all aircraft shipped from Canada to the U.S. He also mentioned a potential decertification of all Canadian aircraft, including those produced by Bombardier, a significant player in the industry.
“If this situation is not addressed immediately, we will impose a 50% tariff on Canada for all aircraft sold to the United States,” Trump stated on Truth Social.
As of Thursday evening, representatives from Bombardier and Canada’s transport ministry had not responded to inquiries for comment.
Historically, the U.S. Department of Commerce had previously imposed tariffs on Bombardier jets back in 2017, asserting that the Canadian manufacturer was selling its jets below cost in the U.S. market, allegedly taking advantage of government subsidies.
After that, the U.S. International Trade Commission determined that Bombardier had not caused any harm to the U.S. industry.
Bombardier has since redirected its focus toward business and private jets. A closure of the U.S. market could significantly impact the company based in Quebec.
Treasury Secretary Scott Bessent recently cautioned Carney that public comments regarding U.S. trade policy might negatively impact the ongoing review of the U.S.-Mexico-Canada Agreement, which is crucial for safeguarding Canada against the harshest effects of Trump’s tariffs.
In a phone conversation with Trump, Carney pushed back against Bessent’s claims that he had backtracked his comments made at the World Economic Forum. He affirmed his commitment to diversifying Canada’s trade relationships through numerous agreements outside of the U.S.
During the forum last week, Carney criticized the tendency of larger powers to exert economic pressure on smaller nations, though he did not explicitly mention Trump. His remarks garnered significant attention, even as he praised Trump at a recent rally.
