Bombardier, General Dynamics Caught In Crosshairs Of Trump's New Tariff Fury On Canada Over Business Jets

• Trump claims Canada has refused to certify General Dynamics’ Gulfstream jets.
• The Gulfstream G800 jet received certification from the Federal Aviation Administration and the European Union Aviation Safety Agency in April.
• Trump said that the U.S. decertification of Bombardier Global Express business jets will remain in place until Gulfstream is fully certified by Canada.

Bombardier and General Dynamics could find themselves in the crosshairs of another round of tariff-related tensions with Canada after U.S. President Donald Trump said he was “decertifying” Bombardier Global Express business jets. In a post on Truth Social on Thursday, Trump did not provide details on the scope or timing of the move, but his remarks raised concerns about yet another trade scuffle that could affect Canadian aerospace exports and U.S. defense and aviation companies tied to cross-border supply chains.

Trump claimed Canada has refused to certify General Dynamics’ Gulfstream jets. “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,” Trump said in a post.

U.S. Decertification

Trump said the decertification by the U.S. will be in place until Gulfstream is fully certified by Canada, “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,” he noted.

The Gulfstream G800 jet received certification from the Federal Aviation Administration and the European Union Aviation Safety Agency in April, but there has been no update from the Canadian certification agency Transport Canada.

According to Flightradar24 in a post on X as a response to a query regarding Trump’s move, the flight tracking firm said that there are currently more than 400 Canadian-made aircraft operating to and from several U.S. airports as of 7:58 p.m. ET on Thursday.

Another Round Of Canadian Tariffs?

Over the weekend, Trump warned that the United States would impose a 100% tariff on Canadian goods if Canada proceeds with a trade deal with China. A few weeks ago, Canadian Prime Minister Mark Carney said Canada and China had reached an agreement to ease trade barriers and lower tariffs.

On Thursday, Trump added that if Canada does not certify Gulfstream-produced planes, he would impose a 50% tariff on other aircraft made in Canada.

“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,” Trump said in the post.

How Are Stocktwits Users Reacting?

Retail sentiment on General Dynamics dipped to ‘bearish’ from ‘neutral’ a month ago, with retail message volumes at ‘high’ levels, according to data from Stocktwits.

Sentiment on Bombardier (BDRBF) jumped to ‘bullish’ from ‘bearish’ territory a week ago, with message volumes at ‘high’ levels.

Shares of General Dynamics have jumped more than 36% in the last 12 months, while U.S.-listed shares of Bombardier have more than tripled in the same period.

For updates and corrections, email newsroom[at]stocktwits[dot]com.

Also See: LUV Stock Has Best Day Ever In Its 50-Year History — Morgan Stanley Hears ‘Pre-Pandemic Southwest’ Again

Share

·

Add us on