Ottawa scrambled to reassure Canada's flagship aerospace manufacturer after Donald Trump threatened to impose 50% tariffs on Canadian-made jets and potentially decertify Bombardier aircraft, jeopardizing the company's access to its largest market.
Industry Minister Mélanie Joly told reporters Monday that the government "will do all we can" to support the Montreal-based company, describing it as "a crown jewel for Quebec and Canada" that is "very, very important for us." The minister confirmed speaking with Bombardier CEO Eric Martel, though she provided no specific details about what support measures might be implemented.
The threat represents an immediate test for Canada's new government, forcing Ottawa to defend one of the country's most strategically important industries just as it attempts to stabilize relations with Washington. Bombardier generates approximately $5 billion of its $8 billion annual revenue from U.S.-based customers, making Trump's tariff threat potentially devastating for the company's business model.
In Canada, as Canadians would politely insist, we're more than just America's neighbor—we're a distinct nation with our own priorities. But those priorities increasingly collide with Trump's protectionist agenda, which appears to target industries where Canada has cultivated competitive advantages through decades of public and private investment.
Bombardier's manufacturing facilities, concentrated in Mississauga, Ontario and Montreal, employ thousands of Canadians in high-skilled aerospace jobs. The company's business jet division, which would face the brunt of Trump's proposed tariffs, represents one of Canada's few remaining globally competitive manufacturing sectors after years of automotive industry decline.
The threat of decertifying Bombardier aircraft—potentially grounding planes already in service with U.S. customers—goes beyond standard trade disputes into unprecedented territory. Such a move would not only devastate Bombardier's sales but could raise safety concerns among existing operators, even if those concerns have no technical basis.
The Globe and Mail reported that Bombardier stock closed up 1.8% Monday after suffering losses Friday when Trump's threats first emerged, suggesting investors remain uncertain whether the president will actually implement his proposed tariffs.
That uncertainty itself poses challenges for Ottawa. The government must prepare concrete support mechanisms—potentially including subsidies, tax relief, or trade retaliation—without knowing whether it's responding to a genuine threat or negotiating leverage. Trump's tendency to use tariff threats as bargaining chips in unrelated negotiations makes calibrating an appropriate response exceptionally difficult.
The aerospace sector represents one of Canada's few remaining industrial strengths, concentrated heavily in Quebec where it carries significant political weight. Any federal response will need to satisfy Quebec voters who view Bombardier as a symbol of francophone economic achievement while avoiding the perception of special treatment that might alienate other regions.
Bombardier has previously weathered U.S. trade challenges, including a 2017 dispute over its C-Series aircraft that ultimately led to the company selling that program to Airbus. That experience—which cost Bombardier its most promising product line—demonstrates the tangible consequences of sustained U.S. trade pressure on even strategically important Canadian companies.
The minister's vague commitment to support Bombardier "of course" and do "all we can" reflects Ottawa's limited options when confronting U.S. market power. Canada could subsidize Bombardier to offset tariff costs, but such measures might trigger additional U.S. countervailing duties. It could retaliate with tariffs on U.S. aerospace imports, but that would harm Canadian airlines and maintenance operations.
Alternatively, Ottawa could encourage Bombardier to shift final assembly to the United States, preserving market access but eliminating the Canadian jobs that make the company politically important in the first place. Such a move would represent exactly the kind of manufacturing hollowing-out that successive Canadian governments have struggled to prevent.
Bombardier declined to comment beyond confirming ongoing dialogue with the Canadian government. The company's silence suggests it's waiting to see whether Trump's threat materializes before committing to expensive operational changes or public confrontation with Washington.
For Canada, the Bombardier tariff threat illustrates the country's fundamental vulnerability: deep economic integration with a much larger neighbor whose political system can generate sudden, dramatic policy shifts. The same integrated supply chains and market access that drive Canadian prosperity become weapons when Washington chooses to use them as such.
The test for the new Canadian government will be whether it can protect Bombardier without either bankrupting the treasury through unlimited subsidies or surrendering Canadian industrial capacity through forced relocation. Neither option appears particularly Canadian in its politeness, but Trump's pressure may leave Ottawa without comfortable choices.
