Trump Threatens 50% Tariff on Canadian Aircraft Sold in the US
Aviation dispute escalates as tensions rise between President Trump and Canadian Prime Minister Mark Carney
Washington: US President Donald Trump on Thursday threatened to impose a 50% tariff on any aircraft made in Canada and sold in the United States, marking a fresh escalation in his trade war with America’s northern neighbor. The warning comes amid growing tensions between Trump and Canadian Prime Minister Mark Carney.
Trump’s threat, posted on social media, followed his weekend warning that the US could impose 100% tariffs on Canadian imports if Canada moved forward with a planned trade deal with China. However, Trump did not clarify when such import taxes would take effect, especially since Canada has already entered into a trade agreement.
In his latest warning, the Republican president said the move was retaliation for Canada’s refusal to certify Gulfstream Aerospace jets manufactured in Savannah, Georgia.
US May Decertify All Canadian Aircraft
Trump said that in response, the United States would decertify all Canadian aircraft, including planes produced by Canada’s largest aircraft manufacturer, Bombardier. In his post, Trump stated, “If for any reason this situation is not corrected immediately, I will impose a 50% tariff on all aircraft made in Canada and sold in the United States.”
As of Thursday evening, Bombardier’s spokesperson and the Canadian Transport Minister had not immediately responded to requests for comment.
The US Commerce Department had previously imposed duties on a Bombardier commercial passenger jet in 2017, during Trump’s first administration, alleging that the Canadian company was selling aircraft in the US at prices below cost. At the time, US authorities claimed that Montreal-based Bombardier benefited from improper government subsidies to artificially lower prices.
‘Bombardier Did Not Harm US Industry’
However, the US International Trade Commission later ruled that Bombardier did not harm the US industry. In recent years, the company has shifted its focus toward the business and private jet market. Being shut out of the US market would represent a significant setback for the Quebec-based manufacturer.
Meanwhile, US Treasury Secretary Scott Bessent warned Prime Minister Carney on Wednesday that his recent public remarks criticizing US trade policy could backfire during the formal review of the US–Mexico–Canada Agreement (USMCA)—a trade pact that has so far shielded Canada from the harshest impact of Trump’s tariffs.
Carney rejected Bessent’s claim that he had walked back his comments during a phone call with Trump on Monday following his remarks at the World Economic Forum (WEF).
Carney said he told Trump that he stood by his Davos speech, in which he emphasized that Canada plans to diversify away from the United States by pursuing a dozen new trade agreements.
At last week’s World Economic Forum in Davos, Carney—without naming Trump—criticized major powers for applying economic pressure on smaller nations. His remarks drew widespread attention and praise, briefly placing him at the center of the global discussion and overshadowing Trump during the event.
