Bombardier, the Canadian aircraft manufacturer, has become a vivid illustration of how deeply intertwined the U.S. and Canadian economies are — and how the countries’ escalating trade feud can quickly pull in major employers with large workforces on both sides of the border.
President Trump used Truth Social on Monday to threaten the Montreal-based company’s access to the U.S. market, saying Bombardier should be barred from selling aircraft in America unless it builds them there.
“NO MORE SELLING BOMBARDIER IN THE UNITED STATES! Their products aren’t good enough!” Mr. Trump posted just hours before Canadian tariffs on $20 billion worth of U.S. goods went into effect shortly after midnight Tuesday. “If they want our Market, they must build here, and stop treating America like a ‘piggybank.'”
Wall Street analysts said it remains uncertain whether Mr. Trump has the legal authority to block Bombardier from selling planes to U.S. buyers. They also warned that any such action could backfire by damaging American suppliers and customers at a moment when demand for private jets remains elevated.
The business jet “market remains historically tight, and a ban on Bombardier products would severely disrupt U.S. customers” who are already dealing with wait times that can stretch for years, analysts at investment bank Stifel wrote in a report.
The White House did not immediately respond to a request for comment.
Bombardier’s stock dropped about 3% on Tuesday after Mr. Trump’s remarks. Here is what to know about the Canadian company now caught in the middle of the trade dispute.
What does Bombardier do?
Bombardier was founded by Joseph-Armand Bombardier, an inventor and entrepreneur from rural Quebec who began building snowmobiles and other equipment designed for snowy terrain in the 1930s.
Today, Bombardier is among the top three business jet manufacturers globally, specializing in medium- and large-size aircraft. The company manufactures and assembles its jets at plants in Canada, the U.S. and Mexico.
Over its long history, it entered and left the train-making business and expanded for a time into making regional and commercial aircraft. But it sold off those parts of its business as it restructured to focus on making private business jets.
Bombardier primarily sells private and commercial jets to individuals, businesses, governments, and military forces worldwide. High-net-worth individuals account for roughly 60% of its customers.
Bombardier’s customers include carriers such as American Airlines and U.S. federal agencies, including the U.S. Department of Defense and Federal Aviation Administration. The Defense Department uses Bombardier planes to conduct intelligence, surveillance, and reconnaissance operations because they can fly fast at high altitudes, Stifel analysts said.
High-net-worth individuals in the U.S. have driven a surge in demand for private jets, benefiting Bombardier and its competitors, including Gulfstream.
“The COVID-19 pandemic has triggered a step-change for private aviation, spawning a new cohort of flyers through record wealth creation and the proliferation of the fleet/charter business model,” Stifel said.
How many workers does Bombardier have in the U.S.?
In a statement on Monday following Mr. Trump’s post, Bombardier sought to underline its contributions to the American economy, saying it accounts for “tens of thousands of jobs across the United States.”
Bombardier said it has workers in 20 U.S. states and plants in Arizona, California, Connecticut, Delaware, Florida, Illinois, Kansas, New Jersey, Texas and Washington, D.C. The company’s supply chain also comprises 2,800 U.S. companies in 47 states, according to Bombardier.
“Bombardier values its great partnership with American companies and its U.S. employees. Our plan is to continue to invest in our people, our customers and the communities in which we operate across the country,” the company said.
A labor union representing machinists and aerospace workers said on Tuesday that it opposes any move to bar Bombardier from selling aircraft in the U.S.
“Anything that undermines the stability and continued growth of these jobs is counterproductive to protecting workers and strengthening the aerospace industry in both the United States and Canada,” the IAM union said in a statement. “The war on workers in the United States, Canada and elsewhere must come to an end.”
How much business does Bombardier do with the U.S.?
Bombardier said in its statement that the company spends over $2.5 billion with U.S. suppliers annually. It has headquarters in Wichita, Kansas, while its Challenger Jets are powered by American-made engines from U.S. aerospace manufacturer Honeywell, which are made in Phoenix, Arizona.
“I reached out to the Trump administration to make certain the President is aware of the significant contributions of Bombardier to Kansas and the importance of its presence in Wichita to many Kansas workers at Bombardier and in the Bombardier supply chain,” Sen. Jerry Moran, a Republican from Kansas, wrote in a social media post.
Sen. Roger Marshall, also a Kansas Republican, said in social media post that “I’m going to fight to keep Bombardier’s over 1,200 Kansas jobs,” adding, “I’ve already taken that concern inside the Oval Office.”
Wings for Bombardier planes are made at the company’s facility in Red Oak, Texas, while flight control components are manufactured at its Los Angeles, California, area facility. Bombardier also operates service centers in Dallas, Texas; Hartford, Connecticut; Miami, Florida; Tucson, Arizona; and Wichita, Kansas.
In January, Bombardier said it was investing to expand its U.S. operations, including opening a new facility in Fort Wayne, Indiana.
Bombardier sources more than 50% of its aircraft components from U.S. manufacturers — more than American competitors such as Gulfstream, according to Stifel.
Can Trump block Bombardier sales in the U.S.?
Whether the U.S. could enforce Mr. Trump’s threat against Bombardier “is a question mark,” Stifel analysts said, noting that buyers could take delivery of its aircraft offshore under a foreign registry.
Yet White House pressure could still affect Bombardier’s business.
“[W]e acknowledge that continued rhetoric by President Trump could temper near-term order flow until a firm trade agreement between the U.S. and Canada is in place.”
Alain Sherter
contributed to this report.
