Trump targets Bombardier as US-Canada aviation trade fight escalates

President Donald Trump has opened a new front in the US-Canada aviation trade dispute, saying Bombardier should not be allowed to sell aircraft in the United States unless it builds them there.

The demand puts one of the world’s biggest business aviation manufacturers in a difficult position. But it could also put thousands of US jobs and suppliers in the firing line because Bombardier’s aircraft already rely on a large American supply chain.

Washington has not said how the restriction would work or whether it would involve tariffs, import limits, certification action or another trade measure.

Bombardier already has a US aerospace footprint

Bombardier employs more than 3,000 people across nine US facilities and works with 2,800 American suppliers, according to the information provided.

The company’s Global 8000 is already partly built in the United States. Its wings are made at Bombardier’s facility in Red Oak, Texas, while its GE Aerospace Passport engines are assembled in Lafayette, Indiana.

The Challenger 3500 also uses a Honeywell HTF7000-family engine, with production centered in Phoenix, Arizona.

That means a restriction on Bombardier aircraft could reach beyond the Canadian factories where final assembly takes place.

The dispute also comes as Bombardier expands its US service network, making the company’s American operations an important part of its wider business.

Gulfstream dispute led to new Bombardier threat

The latest threat follows an earlier dispute over the certification of four Gulfstream business jets.

In January, Trump accused Canada of unfairly delaying certification of the US-built Gulfstream G500, G600, G700 and G800. All four had FAA approval but still needed Canadian validation.

FAA administrator Bryan Bedford said the US wanted a level playing field. “We just want a level playing field.” Trump then threatened to decertify Canadian-built Bombardier aircraft in the US and impose a 50% tariff on Canadian aircraft.

Transport Canada later approved the Gulfstream G500 and G600 on February 15, followed by the G700 and G800 later that month.

The issue appeared to fade. Seven months later, however, the focus has returned to Bombardier’s manufacturing footprint.

Business Jets at Risk

Bombardier’s current business-jet portfolio includes the Challenger 3500 and Challenger 650, as well as the Global 5500, 6500, 7500 and 8000. The Global 8000 has an advertised range of 8,000 nautical miles and competes with Gulfstream’s latest flagship aircraft.

The Challenger 3500 could also be important because of its role in the US fractional-ownership market.

NetJets has a firm order for 12 Challenger 3500s, with options for another 232 aircraft. If all options are exercised, the agreement could cover as many as 244 aircraft and more than $6 billion in value.

Flexjet operates 86 Bombardier Challenger 300/350/3500-series aircraft on its US operating certificate.

Airshare has agreements covering up to 40 Challenger 3500 aircraft, while Wheels Up’s modernized jet operation is centered on the Challenger 300 series and Embraer Phenom 300.

US Aerospace Supply Chain Faces Uncertainty

Moving Bombardier’s final assembly operations from Montreal and Toronto to the United States would not happen overnight. The company’s production systems, workforce and tooling are centered in Canada. At the same time, a large part of its supply chain already crosses the US-Canada border.

That creates a difficult policy question: would forcing more production into the US create new American manufacturing capacity, or disrupt an existing North American aerospace supply chain?

The answer could affect US jobs, aerospace suppliers, business aviation operators and aircraft buyers.

For now, Bombardier and its American customers are waiting to see what Trump’s demand means in practice. The dispute also has a recent historical precedent. In 2017, Trump’s Commerce Department threatened large duties on Bombardier’s CSeries after a Delta Air Lines order. The US courts later ruled against those duties.

The current dispute could again produce consequences that reach well beyond the original trade fight.

Read also: Dubai family uses 3,000 kWh with two electric vehicles and pays $265 electricity bill