Trump admin proposes tariffs on Bombardier aircraft imports to US

Canadian Jet Maker Is Target in Trump’s Trade War By Emma Clarke, BBC News Date: 8 September 2026 Bombardier Inc., the Montreal‑based aircraft manufacturer that once dominated the regional jet market, has again found itself at the centre of a trans‑Atlantic trade dispute. Earlier this week the White House announced that the administration was preparing “targeted measures” against the company, echoing President Donald Trump’s 2018 threat to bar Bombardier from selling its jets in the United States. The renewed pressure arrives at a precarious moment for the firm, which has been fighting a costly restructuring and trying to regain market share after a series of delayed deliveries and a failed bid for a major defence contract..

The new proposal, outlined in a draft notice from the Office of the United States Trade Representative (USTR), would impose additional tariffs on all Bombardier‑manufactured aircraft and parts imported into the United States. While the language is deliberately vague, analysts say the move could raise the effective duty on a Bombardier CSeries jet by as much as 25 percent, a figure that would dramatically increase the price for American airlines already struggling with higher fuel costs and a tightening credit market. Industry experts warn that the timing is especially damaging..

Bombardier’s latest earnings report, released last month, showed a modest profit of $45 million, largely driven by a surge in sales of its Global 7500 business jet. However, the company’s commercial‑aircraft division remains loss‑making, and a substantial portion of its revenue still depends on the U.S. regional market, which accounts for roughly 40 percent of total sales..

The added tariffs could force airlines to reconsider pending orders for the CRJ‑700 and CRJ‑900 models, potentially pushing them toward rivals such as Embraer or Mitsubishi. Washington’s move is being framed as a response to what officials call “unfair subsidies” provided by the Canadian government to Bombardier. The USTR cites a series of tax credits and loan guarantees that were introduced during the 2015‑2020 period, arguing that they give the Canadian firm an artificial advantage over U.S..

Critics, however, point out that similar subsidies have been extended to American aerospace firms, including Boeing, and that the definition of “unfair” remains murky under World Trade Organization (WTO) rules. In a statement released on Thursday, Bombardier’s CEO, Eric Martel, condemned the proposed tariffs as “politically motivated” and “economically reckless.” He warned that the measures would not only hurt the company but also jeopardise jobs across the North American supply chain. Bombardier employs roughly 5,000 workers in the United States, from assembly lines in Miramar, Florida, to engineering teams in Denver, Colorado..

Martel pledged to “defend our interests vigorously” and hinted at a possible challenge before the WTO or an appeal to the U.S. International Trade Commission. The Trump administration’s broader trade agenda has been characterised by a series of sector‑specific actions aimed at protecting domestic industry..

While many of those initiatives have been rolled back under the subsequent Biden administration, a number of “legacy” provisions remain on the books. The Bombardier case is one of the few that has resurfaced with renewed vigor, suggesting that the White House is seeking to leverage existing tools to extract concessions from its closest trade partner. Canadian officials have responded with equal firmness..

Trade Minister Mary Ng announced a “full‑scale diplomatic engagement” with Washington, emphasizing that Canada will not tolerate unilateral actions that undermine the bilateral relationship. She reminded the United States of the 1988 Canada‑U.S. Trade and Investment Partnership, which includes a clause on “fair and equitable treatment” of aerospace manufacturers..

Ng also signalled that Ottawa could consider retaliatory measures, including tariffs on U.S. agricultural products, should the dispute escalate. The potential fallout extends beyond the immediate players..

Airlines such as SkyWest, Republic Airways and Mesa Airlines have already placed provisional orders for Bombardier regional jets, and a sudden increase in costs could force them to scrap or renegotiate those deals. In a conference call, the chief financial officer of SkyWest warned investors that the “uncertainty around trade policy is now a material risk factor” for the company’s 2027 fleet‑renewal plan. Analysts at Morgan Stanley have downgraded Bombardier’s rating, citing the “heightened geopolitical risk” as a catalyst for a possible earnings shortfall..

Meanwhile, the European Union watches closely, as the dispute may set a precedent for other transatlantic disagreements. The EU’s own aerospace sector, led by Airbus, has long been engaged in a tariff battle with Boeing, and any successful U.S. action against Bombardier could embolden Washington to pursue further claims against European firms..

The European Commission’s trade director, Helena Knapik, remarked that “the rules‑based multilateral system must be respected, and unilateral measures that threaten market access are concerning.” In the background, Bombardier’s board is wrestling with strategic options. Sources close to the company say that senior executives are considering a partial sale of the commercial‑aircraft unit to a private equity consortium, a move that could provide the liquidity needed to weather the tariff storm. Others argue that a merger with a U.S..

partner, perhaps a joint venture with a major airline leasing firm, might neutralise the tariff impact by re‑classifying the aircraft as domestically produced. Both pathways carry significant regulatory hurdles and would require shareholder approval. Legal scholars note that the United States has.