Abstract:
The trade conflict between the United States and Canada continues to escalate, with President Trump threatening to ban the sale of U.S.-produced aircraft from Bombardier. "Stop coming to the United States to sell Bombardier!" Trump posted on social media on Monday. "Their products are not good enough! Over 50% of their revenue comes from the United States - they live off American buyers, American companies, American airports and American services - while Canada blocks our great American banks and companies, no matter where they are in the United States."
Canada will impose tariffs of 15% to 50% on hundreds of U.S. products starting on Tuesday in Prime Minister Mark Carney's response to Trump's trade war.
Trump did not make it clear whether he would impose any form of ban on Bombardier aircraft or impose new tariffs on them. He has previously threatened action and accused Canada of blocking certification of U.S.-made Gulfstream aircraft.
The Canadian government, Bombardier and the White House did not respond to requests for comment during the public holiday.
Bombardier CEO Eric Martel said last year that the company has more than 2,800 suppliers in 47 states in the United States. Taking the Bombardier Global 7500 model as an example, more than half of its costs are related to American manufacturing. Its wings are produced in Texas, avionics in Iowa, and engines in Indiana, but assembly and final processing is done in Canada.
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