Bombardier, a Canadian manufacturer of business jets and other transportation products, has once again become a focal point in the escalating trade tensions between the United States and Canada. On September 7, 2026, President Donald Trump issued a warning that Bombardier would no longer be permitted to sell its aircraft in the U.S. market unless the company moved production of its jets to American soil. This latest threat adds to a series of disputes between Washington and Ottawa surrounding Bombardier’s role in the aerospace industry.

The company’s shares declined by 2.5 percent on the Toronto Stock Exchange following the announcement. Bombardier, headquartered in Montreal, responded by highlighting its existing manufacturing presence in the United States, noting it produces parts for its planes at facilities in California and Texas, employs thousands across 20 U.S. states, and works with a supply chain that includes approximately 2,800 American companies.

Founded in 1942 by Joseph-Armand Bombardier, the firm initially gained fame for its snowmobiles. Over the decades, Bombardier expanded into rail transportation and later aviation, acquiring Canadair in 1986 and subsequently other aerospace brands such as Learjet. It became a significant manufacturer of regional aircraft, including the CRJ series, before eventually focusing on private business jets after selling its commercial passenger jet program in 2017 amid earlier trade conflicts.

The U.S. remains Bombardier’s largest market. Of the company’s fleet of more than 5,200 aircraft globally, around half operate in the United States. Customers range from private companies and individuals using its business jets for corporate travel to commercial airlines such as Endeavor Air, PSA Airlines, SkyWest, and GoJet, which operate Bombardier aircraft under affiliated major carriers. Bombardier’s jets are also used by over 50 national defense and military agencies worldwide, including the U.S. Air Force and Army for specialized missions.

The latest trade tension stems partly from a protracted dispute that began in 2017 when Boeing filed a complaint alleging Bombardier received unfair government subsidies that allowed it to underprice its CSeries commercial jets, which were sold to Delta Air Lines. Boeing argued that this constituted a violation of U.S. trade laws, even though it did not directly compete in that particular aircraft segment. The Commerce Department initially imposed nearly a 300 percent tariff on the planes, but Bombardier subsequently transferred majority ownership of the CSeries to Airbus. The planes were rebranded as the Airbus A220 and assembled at a U.S. facility in Alabama, enabling the jets to avoid the penalties and leading Bombardier to exit the commercial passenger aircraft market.

Further complicating matters, President Trump’s administration previously threatened to decertify Bombardier’s Global Express business jets and impose tariffs unless Canada approved several Gulfstream jets manufactured by an American rival. That threat did not materialize after the needed certifications were granted.

Bombardier’s history with U.S. trade disputes extends back decades. In 1982, for example, the Reagan administration challenged Canadian subsidies to Bombardier related to subway train contracts for New York City, resulting in a temporary federal freeze on foreign rail car purchases. Despite significant pressure, Bombardier maintained key contracts, including a major deal in 1999 to supply trains for the Long Island Rail Road.

With significant employment and supply chain ties to the United States and a broad customer base including military, commercial, and private operators, Bombardier continues to navigate a complex geopolitical environment as trade tensions between the U.S. and Canada evolve. The company’s future sales and production decisions now face increased scrutiny amid President Trump’s demands for greater domestic manufacturing of its aircraft.