(Photo: Reuters)
US President Donald Trump has threatened to place a blanket duty of 50 per cent on all aircraft sold by Canada to the US, escalating an increasingly serious trade conflict between the US and the global aircraft certifier, and specifically affecting a Canadian based manufacturer, Bombardier.
Trump wrote on Truth Social that the tariff would be enforced unless Canada certifies business jets manufactured by the US company Gulfstream Aerospace. He had charged Ottawa with refusing to certify a number of the Gulfstream models unfairly and illegally, including 500, 600, 700 and 800 series, which he said were some of the most technologically advanced aircraft in the world. Trump claimed that the measures of Canada were in effect preventing Gulfstream to enter the Canadian market by regulatory means.
The US President also threatened to ensure that Washington would react by recalling certification of Canadian planes including Bombardier Global Express jets. We are also decertifying their Bombardier Global Expresses, and every aircraft manufactured in Canada, until such a day as Gulfstream is fully certified, a great company of America. Trump also made allegations that Canada had been taking years to approve Gulfstream aircraft without any reasons. The relocation would be a significant blow to the aerospace sector in Canada where Bombardier has been in the centre stage, and Gulfstream has been significant in the US business jet market. The conflict brings up the tension between the two nations regarding the access to the market and the quality of regulations.
Trump indicated that failure to solve the problem would lead to punitive trade actions, in which a 50 per cent tariff would be imposed on all the aircraft that would be sold in Canada to the US. The threat has been issued as part of wider political tensions, such as the Trump administration hosting the representatives of an Alberta separatist movement, a move that was of concern in Ottawa. Canadian Prime Minister Mark Carney restated that Canada sought its sovereignty to be upheld, and he made this clear during the talks with Trump. The most recent warning is also indicative of Trump becoming more and more dependent on the tariffs as a lever to advance his trade requests, as a recent executive order is against nations that sell or supply oil to Cuba.
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