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Trump Threatens 50% Tariff on Canadian Aircraft Amid Certification Dispute

Joshua Mwenyi by Joshua Mwenyi
4 months ago
in Business
Reading Time: 2 mins read
A A
tariff on Canadian aircraft

Getty Images

President Donald Trump has announced he will decertify all Canadian-made aircraft, including Bombardier’s Global Express. He has also threatened a 50% tariff on these planes. This move escalates the ongoing trade dispute between the US and Canada. Trump posted the announcement on Truth Social, accusing Canada of using the aircraft certification process to block American-made Gulfstream jets.

“If this is not immediately corrected, I will charge Canada a 50% tariff on all aircraft sold into the US,” Trump wrote.

Legal Uncertainty and Industry Reaction

It is unclear whether Trump has the authority to decertify aircraft. The White House has not released an executive order on Canadian aircraft tariffs. Richard Aboulafia, an aviation expert, stated that no US president has ever decertified jets. He also warned that using aircraft safety for trade disputes could be damaging.

Bombardier responded, highlighting its 3,000 US employees and 2,800 US suppliers. “Thousands of private and civilian jets built in Canada fly in the US every day,” the company stated.

Impact on US Airlines and Passengers

If Trump moves forward with this plan, US airlines could face major disruptions. Bombardier’s CRJ regional jets are used by major airlines like United, Delta, and American. These jets make over 2,600 flights a day. Grounding them could affect 175,000 passengers.

Regional airlines provide essential services for 64% of US airports. Without these planes, smaller airports may lose access to air travel.

Diplomatic Efforts to Resolve the Dispute

Canadian officials have responded cautiously. Industry Minister Mélanie Joly stated they would not panic and believe the issue can be resolved through diplomatic means. Transport Minister Steven MacKinnon added that Canadian officials are in contact with US counterparts and Bombardier’s leadership.

“Canada’s aviation industry is safe and reliable. We will stand behind it,” MacKinnon said.

Read Also

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The situation remains unresolved. The outcome could have significant effects on both the aviation industry and US-Canada trade relations.

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