Uncorking an old US trade row
What’s the difference between French champagne, Wensleydale Cheese and business jets? The first two enjoy the status of Protected Geographical Indication (PGI), as any food and drink afficionado will tell you. That means they must be produced within a specific geographic area to qualify for sale under that description.
No similar restriction applies to the sale of business jets – until now. President Trump, apparently, would like to change that. This week he threatened to ban the sale of the Bombardier aircraft unless the firm relocated production to America.
Commenting on his social media platform Truth Social (September 7th), President Trump wrote: “NO MORE SELLING BOMBARDIER IN THE UNITED STATES!”. He added: “If they want our Market, they must build here and stop treating America like a ‘piggybank’.”
‘Unfair’ restrictions
The president also claimed that more than half of Bombardier’s revenue comes from US customers and accused Canada of imposing “unfair” restrictions on American customers.
In response, Bombardier re-affirmed its commitment to business jet manufacturing in the US.
Without mentioning the president, the firm said in a statement: “Bombardier values its great partnership with American companies and its US 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 highlighted its US workforce throughout the US, citing facilities in Kansas, Texas, Arizona, Florida, Connecticut, Illinois, Delaware, California, Washington D.C. and New Jersey. The business has an overall direct employment presence in more than 20 states and worked with about 2,800 American companies across 47 states. In total, the company spends over $2.5bn with suppliers each year.
Transport Canada
President Trump’s allegation of “unfair competition” probably refers to previous claims that Transport Canada – the government body responsible for enforcing the country’s transport policies, laws and safety regulations – was taking far too long to approve new Gulfstream jets north of the US border. This offers Bombardier an unfair advantage in selling its aircraft, the president argued.
But a spokesperson for Canadian government denied there had been any dragging of feet. “Canada has no outstanding aircraft validation requests involving Gulfstream,” the spokesman tells CJI. “Gulfstream aircraft are and can be freely sold and operated in Canada. Canada continues to meet its international aviation obligations and work with our international partners in accordance with established aviation standards.”
For a more impartial take on this claim and counter claim, CJI turned to the National Business Aircraft Association (NBAA) and two leading aviation lawyers. Dan Hubbard, senior vice president, Communications, NBAA highlighted the interconnectedness of the global aviation supply chain. “Civil aviation relies on an integrated global supply chain that directly powers American manufacturing,” he told us.
“In fact, aircraft produced in North America contain vast amounts of US-made technology, engines and parts, supporting 9.4m jobs and $1.8trn in economic activity across 50 states.”
Tariff-free trade
Tariff-free trade had long played a key role in driving industry growth, he added. “For 45 years, zero-tariff policies have enabled U.S. aerospace to maintain a dominant trade surplus—totalling $109.2bn in 2025, as well as innovation in aerospace and US global leadership in aviation safety.”
Paul Jebely, partner at Sterlington tells CJI: “A social media post is not law. There is no order, no tariff, no FAA action, no customs instruction. The only Section 232 proclamation on aircraft, from July, names no country and no company and imposes nothing. Every [Bombardier] Global and Challenger purchase agreement stands exactly where it stood on Friday. The president can’t ban a company [like that].”
Congress has written detailed statutes for restricting imports, each with findings, procedures and timings, and in 60 years Section 232 has never once been used against a single named company, says Jebely.
David Hernandez, shareholder at law firm Vedder tells CJI the administration could potentially use emergency authorities such as the International Emergency Economic Powers Act (IEEPA) to impose an embargo on Canadian products, including Bombardier.
‘Shrapnel lands in Kansas’
“However, any such action would likely trigger immediate legal and political scrutiny. As we have discussed over the past 18 months, it would also have clear adverse effects on US workers.” Jebely puts that threat into context: “You blindly aim at Montreal and the shrapnel lands in Kansas [one US location of the US’s business jet maintenance facilities].”
That has not been lost on a group of Republican lawmakers from the state. Speaking for the group, Senator Ron Estes said: “Wichita has long been at the forefront of global aerospace, and Bombardier’s impact locally plays a critical role in our region’s dominance.” Bombardier supports the American supply chain, boosts maintenance and is trusted by the military for critical national security missions, he added.
For more on Jebely’s views about Trump’s proposed ban on Bombardier aircraft, listen to CJI’s latest podcast here.
