Key facts
- President Donald Trump threatened to ban Canadian company Bombardier's sales in the U.S. unless it manufactures there.
- The threat escalates an ongoing trade dispute between the U.S. and Canada.
- Bombardier shares fell 3% in morning trade following the announcement.
- Bombardier has 3,500 U.S. employees and a supply chain of 2,800 U.S. companies.
- The U.S. Federal Aviation Administration has approved Bombardier's private jets.
U.S. President Donald Trump threatened to ban sales of Canadian company Bombardier's aircraft in the United States unless the company moves manufacturing operations there, escalating an ongoing trade dispute between the two nations. Trump made the threat via a social media post, stating that Bombardier's products were not sufficient and that it must build in the U.S. to access the lucrative American market, which accounts for approximately half of the company's sales.
Bombardier shares fell 3% in morning trade on Tuesday after opening down 6.4%. The threat comes as Canada is preparing to impose counter-tariffs on $20 billion worth of U.S. goods. It remains unclear how Trump would prevent Bombardier's private jets, which have been approved by the U.S. Federal Aviation Administration, from being delivered to American customers.
Bombardier employs 3,500 people in the U.S. and relies on a network of 2,800 U.S. suppliers across 47 states. The company also has a U.S.-based defense unit in Wichita, Kansas, where it militarizes business jets produced in Canada for defense contracts. Congressman Ron Estes, representing Kansas's fourth district, publicly opposed tariffs on aerospace and defended Bombardier's contributions to his state.