Post by Philipp Mazenauer

US President Donald Trump is threatening neighbouring Canada with a new 50% punitive tariff on aircraft imports into the US. The trigger appears to be a dispute over the certification of US business aircraft in Canada. Trump also stated on his Truth Social platform that all aircraft manufactured by Canadian aircraft manufacturer Bombardier and all other jets manufactured there would have their US certification revoked. Trump cited the Canadian authorities' treatment of Gulfstream, a US manufacturer of business aircraft, as the reason for the revocation and the possible punitive tariff. Trump complained that Canada had not granted operating licences to several models from Bombardier's competitor (some delay on latest Gulfstream model certification due to increased software evaluation requirements; however based on legitimate learnings on software malfunctions of Boeing 737MAX), thereby effectively banning their sale in the neighbouring country. The president threatened that if this was not ‘immediately corrected’, he would impose an additional import duty of 50%. Trump often resorts to tariffs to get his way. Even traditionally close allies such as Canada are not spared. We all know by now that Trump, however, uses tariffs only as a threat and ultimately "chickens out". This uncertainty, however, triggers an immediate impact on sales of newly manufactured Bombardiers to the US and, importantly, on used Bombardier aircraft (from whatever jurisdiction) to the US, but also on US registered Bombardiers.   A major uncertainty that hits the aviation industry!