Trump Threatens 50% Tariff on Canadian Aircraft As Ottawa Scrambles to Certify Gulfstream Jets

Canadian officials are moving to defuse a trade dispute with Washington after President Donald Trump threatened to impose a 50% tariff on aircraft sold from Canada to the United States and to decertify new Canadian planes amid ongoing certification delays for Gulfstream jets.

Canadian Industry Minister Mélanie Joly said Saturday that Transport Canada is working to complete the certification process for the Gulfstream models and expressed confidence that the issue can be resolved diplomatically.

“It is our understanding that the certification process is well underway and that the certification demands were absolutely recent,” Joly said during an interview with the Canadian Broadcasting Corporation. She emphasized that “the approval process for aircraft is something we don’t politicize.”

Trump’s threat came after he expressed frustration that Ottawa has yet to approve certain Gulfstream jets built by U.S. manufacturer General Dynamics, even though they have already been certified by the Federal Aviation Administration. The president said he viewed the delays as unfair to U.S. companies and suggested that reciprocal trade measures could follow if Canada failed to act.

Canadian Transport Minister Steven MacKinnon said he had spoken with executives from both General Dynamics and Canadian planemaker Bombardier Inc. to discuss the issue and that government officials remain in close contact with their American counterparts.

“Our government is actively working on the situation,” MacKinnon said Friday.

The dispute has rattled the North American aerospace sector, which is heavily integrated across U.S.-Canadian supply chains. Shares of Bombardier fell more than 5% to C$234.34 in late afternoon trading on the Toronto Stock Exchange following Trump’s remarks.

The International Association of Machinists and Aerospace Workers condemned the president’s threat in a statement, warning that decertification and tariffs could cause “serious disruption to the North American aerospace industry and put thousands of jobs at risk on both sides of the border.”

“Threats to decertify Canadian aircraft are unjustified and dangerous,” the union said. “Aircraft certification exists to ensure safety, not to serve as a political or economic weapon.”

The escalating dispute underscores renewed tensions between the Trump administration and Ottawa over trade fairness and regulatory coordination. U.S. officials have argued that Canada’s aviation certification process has lagged behind industry norms, while Canadian regulators insist that they are conducting due diligence consistent with international safety standards.

Gulfstream Aerospace, a subsidiary of General Dynamics, has long relied on reciprocal certification between the FAA and Transport Canada to streamline approvals for new aircraft. Industry analysts warn that a prolonged standoff could delay deliveries, disrupt manufacturing schedules, and complicate maintenance approvals for North American carriers.

In a statement on X, MacKinnon said he had spoken with Bombardier’s CEO and senior leadership at General Dynamics and pledged continued cooperation with the U.S.

“Canada’s aviation industry is safe and reliable. We will always support it,” MacKinnon wrote. “Officials from Transport Canada are in communication with their American counterparts, and our government is actively working on the situation.”

The Gulfstream certification issue comes amid broader trade friction between Washington and Ottawa over energy and defense cooperation. Trump has repeatedly pushed for faster regulatory approval of U.S. exports and has accused Canada of protectionist practices in the aerospace and defense sectors.

Canadian officials have downplayed the prospect of a prolonged conflict, noting that both governments have incentives to maintain cross-border cooperation in aviation manufacturing and safety oversight.

Analysts say a 50% tariff on Canadian aircraft would have far-reaching economic consequences, potentially increasing costs for airlines and undermining the competitiveness of North America’s aerospace supply chain, which employs more than 200,000 workers across both countries.

For now, both governments appear intent on avoiding escalation. Joly said she expects the certification process for Gulfstream jets to be completed soon and reiterated Canada’s commitment to “transparency and cooperation” in resolving the issue.