Trump tariffs: In an escalation of trade war with Canada, United States President Donald Trump said he will decertify all planes from the country and impose 50% tariffs on aircraft sold in the US until the neighbour approves Gulfstream jets made by General Dynamics Corporation.
Donald Trump alleged that Canada’s refusal to certify the Gulfstream 500, 600, 700, and 800 Jets — which he called the “greatest, most technologically advanced airplanes ever made” — is “wrong and illegal”.
He added that the US will decertify “Bombardier Global Expresses, and all Aircraft made in Canada” till such time that Gulfstream is fully certified.
He also accused Canada of prohibiting the sale of Gulfstream products and said that pending immediate “correction” he would charge Canada 50% tariff on “any and all aircraft sold into the US”.
It was not clear if the tariffs would apply immediately or come into effect at a later date pending response from Canada on the matter.
Donald Trump on plane decertification, new tariffs: Full text
In a post on Truth Social, early on 30 January (IST), Donald Trump wrote: “Based on the fact that Canada has wrongfully, illegally, and steadfastly refused to certify the Gulfstream 500, 600, 700, and 800 Jets, one of the greatest, most technologically advanced airplanes ever made, we are hereby decertifying their Bombardier Global Expresses, and all Aircraft made in Canada, until such time as Gulfstream, a Great American Company, is fully certified, as it should have been many years ago.”
“Further, Canada is effectively prohibiting the sale of Gulfstream products in Canada through this very same certification process. If, for any reason, 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 stated.
How much of a threat is this to Canada’s aircraft manufacturers?
According It’s unclear how much of a threat Trump’s declaration poses to the Canadian-made aircraft already in service with airlines in the US. However, Bombardier’s CRJ line of regional jets are widely used by US carriers, with American Airlines Group Inc. counting about 200 CRJ aircraft in its regional fleet last year, according to American’s website. Delta Air Lines Inc.’s regional partners had more than 150 CRJs in operation aircraft as of the end of 2024, according to a securities filing.
“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,” said Richard Aboulafia, an aviation analyst and managing director at AeroDynamic Advisory. “And does he have any authority to do this?”
Bombardier Inc. and Canadian government officials didn’t immediately respond to requests for comment. A spokesperson for the Federal Aviation Administration referred a request for comment to the White House. The agency is responsible for certifying aircraft in the US.
Gulfstream announced in April last year that it had received certification from the FAA and the European Union’s aviation regulator for the G800.
Trump’s move is the latest escalation of trade tensions with a major US trading partner, including a recent threat to hit Canadian goods with a 100% tariff if the country made a trade deal with China.
Trump has bristled at comments from Canadian Prime Minister Mark Carney at the World Economic Forum in Davos that offered an implicit denunciation of Trump’s approach to economic and foreign policy. The White House has also expressed annoyance at a recent agreement between Ottawa and Beijing that essentially swapped canola sales to China for a quota of electric vehicle sales to Canada.
The two leaders spoke earlier this week, with Carney standing by his comments at Davos and seeking to explain Canada’s push to diversify its trade with other nations.
The back-and-forth comes as the countries prepare to renegotiate their continental trade pact, known as USMCA, which Trump agreed to in his first term. The US and Canada are not applying tariffs to most goods traded under that agreement, with some exceptions, including the auto sector.
That means a large proportion of Canadian exports are entering the US duty-free, though significant tariffs remain on key sectors like steel and aluminum.
Earlier Thursday, Trump threatened to tariff countries that provided or sold oil to Cuba, in a move that could subject Mexico to higher levies.
More than half of Bombardier’s global fleet of over 5,200 aircraft is operated in the US. In 2024, 64% of Bombardier’s sales came from the US, compared with 3% from Canada.
The planemaker, headquartered near Montreal, has a complicated supply chain that includes manufacturing across North America.
“We have more than 2,800 US-based suppliers across 47 states and are creating tens of thousands of jobs in the US,” Bombardier Chief Executive Officer Eric Martel said last year. “The vast majority of our platforms are made up of more US parts and systems than any other country.”
More than half of the costs for the Bombardier’s Global 7500 jet are tied to US manufacturing, for example. The wings are made in Texas, avionics in Iowa and motors in Indiana, but the assembly and finishing are done in Canada.
The US Trade Representative produces a lengthy report on non-tariff barriers to trade. Canada’s certification process for aircraft isn’t mentioned in the 2025 version of that report.
US-Canada trade tensions on rise: What has happened?
Earlier this month, on 24 January Donald Trump also threatened to impose 100% additional tariffs on the country over potential trade deals with China. In response, Carney in on a video post on X (formerly known as Twitter) the next day urged citizens to “Buy Canadian”, adding that Canada will “focus on what we can control”.
“If Governor Carney thinks he is going to make Canada a ‘Drop Off Port’ for China to send goods and products into the United States, he is sorely mistaken. China will eat Canada alive, completely devour it, including the destruction of their businesses, social fabric, and general way of life. If Canada makes a deal with China, it will immediately be hit with a 100% Tariff against all Canadian goods and products coming into the USA,” Donald Trump threatened.
Prior to this, Donald Trump has also lashed out at Canada for opposing his so-called ‘Golden Dome’ missile defense system over Greenland. “Canada is against The Golden Dome being built over Greenland, even though The Golden Dome would protect Canada. Instead, they voted in favor of doing business with China, who will ‘eat them up’ within the first year!” he said on Truth Social.
(With inputs from Bloomberg)
Key Takeaways
- The decertification of Canadian planes could significantly impact Bombardier, a major player in the U.S. aviation market.
- Trump’s tariffs reflect escalating trade tensions and could lead to a re-evaluation of existing trade agreements.
- The announcement underscores the complexities of international trade relationships, especially in the aerospace sector.