Trump's Tariff Threat Sends Bombardier Shares Tumbling, Rattles Aviation Sector

By Allison Lampert

MONTREAL, Jan 30 (Reuters) — The specter of renewed trade hostilities loomed over North American aviation Friday as Bombardier Inc. saw its stock price plummet 9%. The sell-off was triggered by a social media post from former U.S. President Donald Trump, who threatened to decertify the Canadian manufacturer's large-cabin jets and slap a 50% import tariff on all new Canadian-made aircraft.

Trump's warning, issued on Truth Social, explicitly linked the punitive measures to Canada's certification process for the latest Gulfstream business jets, a product of U.S.-based General Dynamics. "If 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," he wrote, adding he was "decertifying their Bombardier Global Expresses, and all Aircraft made in Canada."

While a White House official later clarified to Reuters that the statement did not target Canadian-built planes already in operation, the immediate market reaction underscored the fragility of cross-border supply chains. The aviation sector had largely been insulated from the earlier waves of U.S.-led trade disputes, with aircraft and parts flowing freely under the USMCA agreement.

The potential ramifications are vast. The United States is the world's largest market for business aviation, and major U.S. carriers like American Airlines and Delta Air Lines utilize Canadian-made regional jets extensively. According to data from Cirium, there are over 5,400 Canadian-made aircraft—from narrow-body jets to helicopters—registered in the U.S., including 150 Bombardier Global Express models operated by 115 entities.

"The post has generated a significant volume of urgent queries from our clients, both current owners and prospective buyers of Bombardier aircraft," said Amanda Applegate, a U.S. business aviation attorney at Soar Aviation Law. "This creates immediate uncertainty for asset values and future deliveries."

The threat also inflames broader diplomatic tensions, coming just days after Canadian Prime Minister Mark Carney critiqued U.S. trade policy and suggested the rules-based international order was eroding.

Industry Reaction:

"This is a reckless move that treats complex certification frameworks and multi-billion dollar industries as political bargaining chips," said Michael Thorne, an aerospace analyst at Albright Capital. "It undermines decades of integrated North American manufacturing and will hurt U.S. operators, maintenance networks, and jobs as much as anyone."

"Finally, someone is standing up to the unfair advantages!" argued Deborah Shaw, a political commentator and talk radio host. "For too long, our policies have favored foreign manufacturers. If Canada won't play fair on certification, why should we grant their planes unfettered access? It's about time for tough love."

"The volatility is paralyzing for planning," shared Robert Chen, CFO of a Texas-based fractional ownership company. "We're evaluating contingency plans, but there are no easy substitutes for these aircraft platforms. This uncertainty is the worst outcome for the market."

"It feels like 2018 all over again, but aimed squarely at aviation now," remarked Sarah Jensen, a trade lawyer in Washington D.C. "Even if this is primarily rhetorical, it forces companies to factor in geopolitical risk where it previously didn't exist, increasing costs for everyone."

(Reporting by Allison Lampert in Montreal and Nivedita Balu in Toronto; Editing by Kevin Liffey)