Economy|Trade WarBombardier stock dives on Trump threats of 50% tariff on Canadian planesTrump threatened decertifying Bombardier’s planes and slapping new tariffs if Canada did not certify US rival planes.
Bombardier, a Canadian aircraft manufacturer, experienced a significant decline in its stock following a statement by United States President Donald Trump. The President threatened to decertify large-cabin planes made by Bombardier and impose a 50…
Bombardier, a Canadian aircraft manufacturer, experienced a significant decline in its stock following a statement by United States President Donald Trump. The President threatened to decertify large-cabin planes made by Bombardier and impose a 50 percent import tariff on new aircraft from Canada until the latest models manufactured by the US competitor, Gulfstream, receive certification.
Impact on Bombardier and Aviation Industry
The announcement led to a 9 percent decrease in Bombardier's stock value. Although a White House official clarified that the President was not referring to Canadian-built planes currently in service, the statement caused concern among airlines, aviation analysts, and private jet owners.
The proposed tariffs and decertification could significantly affect US carriers such as American Airlines and Delta Air Lines, which utilize Canadian-made aircraft for regional services. The United States represents the largest market for business aviation. According to data provider Cirium, 150 Global Express aircraft are registered in the US, operated by 115 companies, and a total of 5,425 Canadian-made aircraft, including narrow-body jets, regional jets, and helicopters, are registered in the country.
Bombardier, a Canadian aircraft manufacturer, experienced a significant decline in its stock following a statement by United States President Donald Trump.
In response, Bombardier acknowledged the President's statement and indicated ongoing communication with the Canadian government. The company highlighted its employment of over 3,000 individuals across nine major facilities in the United States and its contribution to the US economy through 2,800 suppliers.
Bombardier emphasized the daily operation of thousands of private and civilian jets built in Canada within the US, expressing hope for a swift resolution to prevent disruption to air traffic and the flying public.
Based on reporting by Al Jazeera.
