'No More Selling Bombardier': Trump Threatens To Stop Sale Of Canadian Jets In US

(MENAFN- Live Mint) US President Donald Trump has threatened to stop Bombardier Inc. jets from being sold in the US, escalating a trade dispute with Canada ahead of Ottawa's planned retaliatory measures at 12.01 am (Canada time) today.

"NO MORE SELLING BOMBARDIER IN THE UNITED STATES!" Trump said in a social media post on Monday, criticising the Canadian aircraft maker and arguing that more than half of its revenue comes from the US market.

"Their products aren't good enough! Over 50% of their revenue comes from the United States - They live off American Buyers, American Companies, American Airports, and American Service - All while Canada blocks our GREAT American Banks, and Companies, throughout the U.S.A," he said.

Quick answers to key questions

.5 QUESTIONS1What did Trump threaten regarding Bombardier jets in the US?⌵

Trump threatened to stop Bombardier jets from being sold in the United States, criticizing the company for relying heavily on American buyers.

2How might Trump's threats against Bombardier affect US companies?⌵

Trump's threats could negatively impact American companies that are part of Bombardier's supply chain, which involves thousands of US jobs and significant spending on American suppliers.

3Why is Canada imposing retaliatory tariffs on US products?⌵

Canada is imposing retaliatory tariffs in response to new US trade levies, aiming to protect its economy and industries affected by US tariffs.

4What are the potential consequences of the trade tensions between the US and Canada?⌵

The escalating trade tensions could lead to increased tariffs on various products, affecting consumer prices and potentially sparking further retaliatory measures from both countries.

5Should Canadian consumers consider boycotting US products due to the trade conflict?⌵

Some Canadians are choosing to boycott US products in response to the trade conflict, indicating a significant sentiment that suggests consumers feel strongly about the diplomatic tensions.

Trump did not clarify whether his comments meant a ban on Bombardier aircraft or a new import tariff. He has made similar threats against the company in the past, including claims that Canada had blocked certification of US-made Gulfstream jets, Bloomberg reported.

Canada prepares to impose tariffs on US

The comments came as Canada prepares to impose tariffs ranging from 15% to 50% on hundreds of US products on Tuesday. The measures are Prime Minister Mark Carney's response to new US trade levies imposed on Canada.

Any US action against Bombardier could also affect American companies that form part of the aircraft maker's supply chain. Bombardier said Monday that it has a significant presence in the US aerospace industry, with employees across more than 20 states, including Texas, Arizona and Florida.

The company manufactures wings for its fastest business jet at a facility in Red Oak, Texas, while flight-control components are produced in the Los Angeles area. Bombardier is also scheduled to open a new facility in Fort Wayne, Indiana, this year.

Also Read | Canada's retaliatory tariffs set to take effect: Which US goods face new duties? Bombardier's supply chain in US

Bombardier said its aircraft support tens of thousands of US jobs through its American operations and supply chain, which includes around 2,800 US companies across 47 states. The company said it spends more than $2.5 billion annually with American suppliers.

Republican Senator Jerry Moran of Kansas, where Bombardier has its US headquarters, said he had contacted the Trump administration to highlight the company's economic importance to the state.

The latest escalation comes as Trump administration officials have indicated that Washington could respond to Canada's counter-tariffs with additional measures. A potential new tariff on automobiles has also been discussed, Bloomberg reported.

Also Read | Trump's 50% Canada tariffs kick in: Whisky, alcohol, dairy, and more Trade tensions between US, Canada

Canada is preparing to raise import duties on several US steel products to 50% from 25% on Tuesday, while imposing tariffs on a range of consumer goods, unless the measures are delayed at the last minute.

The retaliatory steps follow the breakdown of trade negotiations between the two countries. US and Canadian officials had spent weeks trying to reach an agreement to ease tensions and prevent another round of tariffs. The talks appeared to make progress before collapsing last month.

The breakdown paved the way for US tariffs of 50% on around $20 billion of Canadian goods from August 22. Canadian authorities announced details of their retaliatory tariffs three days later.

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