Trump threatens Bombardier ban as tariff war escalates

US President Donald Trump has threatened to halt sales of Canadian plane manufacturer Bombardier unless the company begins constructing aircraft in the United States. The recent threat, posted on Monday, marks the second noteworthy potential action by the American leader this year targeting the firm. Bombardier currently operates numerous aircraft in the US domestic fleets.

The escalation in the tariff war comes as Canada prepares to retaliate with tariffs on various US goods, starting on Tuesday. Bombardier's social media post came on the eve of Canada's retaliation.

Trump demanded that the Canadian manufacturer build its planes in the US and stop treating America like a "piggybank." He emphasized that Canada is blocking American banks and companies from doing business there. The US market accounts for over half of Bombardier's revenue, according to Trump. Bombardier responded by stating that the company employs tens of thousands of workers across the US and its supply chain includes roughly 2,800 American companies in 47 states.

The company highlighted that its aircraft are built with American-made components and that it intends to open a new facility in Fort Wayne, Indiana, this year.

Earlier this year, Trump threatened to decertify Bombardier planes in the US and impose a 50-percent tariff on Canadian aircraft due to Canada's refusal to approve certification for new models of US-made Gulfstream jets. However, these threats were not implemented. Canada promptly certified Gulfstream planes after Trump's intervention in January.

Trump's latest social media post highlights ongoing resentment over Bombardier's actions amid a heated bilateral tariff dispute. Even if Trump attempted to carry out his latest threat, it remains uncertain how it would transpire. The Federal Aviation Administration, rather than the White House, is responsible for certifying or decertifying aircraft in the country.

Bombardier models are still certified in the US, and the company is currently exempt from US tariffs.

Earlier this month, as trade negotiations unraveled, Trump imposed 50-percent tariffs on approximately $20 billion worth of Canadian products, including hockey sticks and cement. Canada announced retaliatory tariffs on an equivalent amount of US goods, beginning early Tuesday. The duties range from 15 percent to 50 percent and apply to steel, aluminum, and dairy products like cheese.

The US-Canada trade talks collapsed late last month after multiple meetings in Washington. Canadian Prime Minister Mark Carney stated that he opted to suspend the negotiations.