Donald Trump Threatens Canada with 50 Percent Tariff
President Donald Trump has warned of a 50percent tariff on planes manufactured in Canada and sold in the U.S., intensifying a trade conflict with Ottawa and Prime Minister Mark Carney, according to the Associated Press (AP).
In a Thursday post on his Truth Social platform, Trump stated that the decision was a reaction to Canada's unwillingness to certify multiple business jets manufactured by the US company Gulfstream Aerospace.
"Trump stated that Canada has unjustly and unlawfully declined to certify the Gulfstream 500, 600, 700, and 800 jets, noting that the US would retaliate by decertifying all planes produced in Canada."
Trump mentioned that this would encompass airplanes manufactured by Bombardier, which is Canada’s foremost aircraft manufacturer. If this issue isn’t promptly resolved, I will impose a 50percent tariff on all aircraft sold into the United States from Canada,” he stated.
Also Read: A Brief History of India's Transformation Under PM Narendra Modi
The recent threat comes after previous alerts from Trump regarding Canada's trade relations with China. During the weekend, he stated that it would be “extremely risky” for Canada to strengthen its business ties with Beijing and previously suggested a potential 100 percent tariff on Canadian products associated with that agreement.
Trump stated that the US was responding after Canada refused to certify Gulfstream jets manufactured in Savannah, Georgia, while essentially hindering their sale via its approval procedure.
Also Read: 5 Latest CHRO Appointments in Global Corporations
The transport ministry of Canada and Bombardier did not promptly reply to requests for comment, according to AP.
Also Read: How This Techie Turned Visa Struggles into Startup Success
In 2017, the US Commerce Department imposed tariffs on a Bombardier passenger jet, stating that the company sold planes below market price with government assistance during Trump's initial term. The US International Trade Commission later reversed that decision, determining that US industry was not harmed.
Since then, Bombardier has redirected its emphasis toward business and private aircraft. Analysts claim that being cut off from the US market would be a significant blow for the company based in Quebec.