• Trump threatens a 50% tariff on Canadian aircraft sold in the U.S.
• This escalation follows a refusal by Canada to certify Gulfstream jets.
• Trump announces decertification of Bombardier's Global Express jets.

U.S. President Donald Trump has warned Canada that the United States could impose a 50% tariff on all aircraft sold there, amidst escalating tensions over certification disputes with Gulfstream Aerospace. Trump's threats come as Canadian Prime Minister Mark Carney has condemned U.S. trade policies, further straining the relationship between the two nations. Trump stated on Truth Social, "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," reflecting serious concerns regarding trade practices, particularly affecting Bombardier and Gulfstream jets according to India Times and CBS News.

The U.S. government plans to decertify all Canadian-made aircraft, particularly impacting Bombardier’s Global Express jets, exacerbating the already tense trade relations. This decertification is contingent upon Canada certifying various Gulfstream models, including the G500, G600, G700, and G800. Trump's warning directly affects U.S. airlines such as American Airlines and Delta Air Lines, which rely on Canadian aircraft for regional services, according to Channel News Asia and Reuters.

As of this week, more than 5,000 Canadian-made aircraft are registered and operational in the United States, indicating significant economic interdependence. Trump's stance on tariffs is part of a larger pattern of increasing trade friction, as shown by past actions against Bombardier regarding unfair subsidies in the U.S. market. Canadian aircraft manufacturers could face severe penalties if the tariffs are enacted, potentially jeopardizing the entire aviation system, warns industry experts cited by CBS News and Channel News Asia.

Transport Canada has yet to comment on the certification issue, while Trump’s directives raise questions about the legality of decertifying aircraft for economic reasons, an authority typically reserved for the Federal Aviation Administration (FAA). The FAA can revoke certifications primarily for safety reasons, not economic disputes, indicating a potential legal hurdle for any actions Trump may attempt to enforce. This situation continues to develop amidst the ongoing negotiations governed by the U.S.-Mexico-Canada Agreement (USMCA), which positions the U.S. as Canada's largest trading partner in aerospace, as noted in reports from CBS News and India Times.