Trump Threatens 50% Tariff on Canadian Aircraft in Trade Dispute

U.S. President Donald Trump has escalated trade tensions with Canada by threatening to impose a 50 per cent tariff on all aircraft sold into the United States unless Ottawa immediately resolves a dispute over aircraft certifications. In a post on his Truth Social platform, Trump said the U.S. would also “decertify” Canadian-made aircraft, including Bombardier’s Global Express business jets, until the issue is fixed — a move that could disrupt aviation markets and deepen an already fraught economic relationship.

Trump’s statement is framed as retaliation for what he says is Canada’s refusal to certify several models of Gulfstream business jets manufactured in the United States. He accused Canada of blocking those certifications while allowing Canadian aircraft broad access to the U.S. market, and urged an immediate correction to the situation.

The threat marks a sharp escalation in what has become a broader trade dispute between the two neighbours, which has included earlier threats of 100 per cent tariffs on Canadian imports if Canada proceeded with a trade deal with China, and other tariff measures dating back to 2025. Analysts say the move reflects ongoing political and economic friction under Trump’s second presidency.

Canada has not yet publicly responded to Trump’s latest tariff threat. Requests for comment from Transport Canada and Bombardier were not immediately returned, though Bombardier previously stated its aircraft meet U.S. Federal Aviation Administration (FAA) safety standards and emphasized the importance of Canadian-built aircraft in daily U.S. commercial and private aviation.

Experts warn that tying aircraft certification — traditionally a safety matter overseen by regulators like the FAA — to trade disputes is unprecedented and could have significant consequences for North American aviation. There are thousands of Canadian-built aircraft operating in the United States, ranging from private business jets to regional passenger planes, and grounding or taxing them could disrupt services and affect communities that rely on regional air connections.

The new threat comes amid ongoing political tensions between Trump and Canadian Prime Minister Mark Carney, who recently criticised U.S. trade practices at the World Economic Forum, calling for stronger global cooperation and resistance to economic coercion. These remarks were followed by retaliatory tariff threats from Trump and further strain in bilateral relations.

Canadian industries and economic stakeholders are watching closely, as aircraft manufacturing is a key contributor to Canada’s economy and trade with the U.S. Any imposition of high tariffs or decertification could ripple through supply chains and impact jobs, exports and North American aerospace integration.