Trump Announces 50% Tariffs on Canadian Aircraft in Major Trade Escalation
In a significant escalation of trade tensions with Canada, former United States President Donald Trump has declared he will decertify all aircraft from Canada and impose 50% tariffs on planes sold in the US. This dramatic move comes as a direct response to Canada's refusal to certify Gulfstream jets manufactured by General Dynamics Corporation.
Trump's Allegations Against Canada's Certification Process
Donald Trump has alleged that Canada's decision not to certify the Gulfstream 500, 600, 700, and 800 jets is "wrong and illegal." He described these aircraft as the "greatest, most technologically advanced airplanes ever made" and announced retaliatory measures through a post on Truth Social early on January 30 (IST).
The former president stated: "Based on the fact that Canada has wrongfully, illegally, and steadfastly refused to certify the Gulfstream jets... we are hereby decertifying their Bombardier Global Expresses, and all Aircraft made in Canada, until such time as Gulfstream is fully certified."
Immediate Threats and Economic Implications
Trump further accused Canada of effectively prohibiting Gulfstream product sales through its certification process. He warned that unless this situation is "immediately corrected," he would impose a 50% tariff on any and all aircraft sold into the United States from Canada.
The timing of these potential tariffs remains unclear—whether they would apply immediately or take effect pending Canada's response. This announcement represents the latest development in ongoing trade tensions between the two North American neighbors.
Impact on Canadian Aircraft Manufacturers
The decertification threat poses significant concerns for Canadian aircraft manufacturers, particularly Bombardier. Aviation analyst Richard Aboulafia questioned the move, stating: "I don't know what this is or where it's coming from, but it's beyond a bad idea for the president to get in the way of safety and certification. And does he have any authority to do this?"
Bombardier's substantial exposure to the US market includes:
- More than half of its global fleet of over 5,200 aircraft operates in the United States
- 64% of Bombardier's 2024 sales came from the US market
- American Airlines Group Inc. had approximately 200 CRJ aircraft in its regional fleet last year
- Delta Air Lines Inc.'s regional partners operated more than 150 CRJs as of late 2024
Broader Context of US-Canada Trade Relations
This aircraft decertification threat follows other recent trade escalations between the two countries. Earlier in January, Trump threatened to impose 100% additional tariffs on Canadian goods if the country pursued trade deals with China.
The tensions have been brewing amid several developments:
- Canadian Prime Minister Mark Carney's implicit criticism of Trump's policies at the World Economic Forum in Davos
- Recent agreements between Ottawa and Beijing involving canola sales and electric vehicle quotas
- Ongoing preparations to renegotiate the USMCA trade agreement
- Canada's opposition to Trump's proposed 'Golden Dome' missile defense system over Greenland
Complex Supply Chain Considerations
Bombardier's operations highlight the interconnected nature of North American aerospace manufacturing. The company maintains:
- More than 2,800 US-based suppliers across 47 states
- Significant US manufacturing content in its aircraft, with over half the costs for Global 7500 jets tied to US production
- Wings manufactured in Texas, avionics in Iowa, and motors in Indiana, though final assembly occurs in Canada
Interestingly, Canada's aircraft certification process does not appear in the US Trade Representative's 2025 report on non-tariff barriers to trade, suggesting this issue may represent a new front in bilateral tensions.
Key Takeaways from the Escalation
The potential decertification of Canadian aircraft could have substantial consequences:
- Significant impact on Bombardier's operations and US market presence
- Reflection of escalating trade tensions that may lead to re-evaluation of existing agreements
- Underscoring of complex international trade relationships in the aerospace sector
- Potential disruption to airlines relying on Canadian-made regional jets
As both countries prepare for USMCA renegotiations, these developments highlight the fragile nature of trade relationships even between close allies and trading partners. The aerospace sector's intricate supply chains mean that tariffs and decertification threats could have ripple effects throughout North American manufacturing.
