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Bombardier Shares Plunge Amid Trump Trade Threat

  //house-home.news-articles.net/content/2026/02/2 .. rdier-shares-plunge-amid-trump-trade-threat.html
  Published in House and Home on Thursday, February 26th 2026 at 15:55 GMT by socastsrm.com
      Locales: CANADA, UNITED STATES

Toronto, Canada - February 26th, 2026 - Bombardier Inc. shares experienced a significant downturn today, falling over 11% in early trading following a renewed threat from former U.S. President Donald Trump. Trump, via his social media platform, leveled accusations of "unfair trade practices" against Bombardier and pledged to impose substantial tariffs on its aircraft and potentially decertify the company, effectively excluding it from lucrative U.S. government contracts.

This escalation marks a worrying return to a trade dispute that has simmered between the United States and Canada for years, originating with the development and production of Bombardier's CSeries commercial jet - now rebranded as the Airbus A220 following a strategic partnership designed to counter U.S. market access issues. While the initial dispute involved Boeing's complaint regarding alleged subsidies allowing Bombardier to sell its aircraft at unfairly low prices, Trump's latest pronouncements broaden the scope, suggesting a more comprehensive assault on the Canadian aerospace sector.

History of Conflict & the Boeing Complaint

The roots of this conflict trace back to 2017 when Boeing filed a petition with the U.S. Department of Commerce and the International Trade Commission, alleging that Bombardier was receiving unfair subsidies from the Canadian government, allowing it to sell its CSeries aircraft (later the A220) at artificially low prices in the U.S. market. Boeing claimed this practice harmed its own commercial aircraft sales. The U.S. initially sided with Boeing, imposing preliminary countervailing duties on the CSeries. However, Airbus's acquisition of a majority stake in the CSeries program, and the establishment of A220 production facilities in Mobile, Alabama, significantly altered the landscape. This move was largely interpreted as a strategic attempt to circumvent potential U.S. trade barriers by establishing a domestic manufacturing presence.

Trump's Previous Trade Actions & Current Threats

During his first term, Trump previously targeted Canada with tariffs on steel and aluminum imports, citing national security concerns. These actions led to retaliatory tariffs from Canada, creating friction in the North American trade relationship. Today's threat, however, is distinct. Rather than a broad sectoral tariff, it focuses specifically on Bombardier, a key player in both the commercial and business jet markets. Decertification, if enacted, would be a particularly damaging blow, effectively barring Bombardier from competing for vital U.S. defense and government contracts - a significant portion of the company's revenue.

Market Reaction and Analyst Concerns

The market reacted swiftly and negatively to Trump's statement. Bombardier's stock plummeted 11.3% on the Toronto Stock Exchange before stabilizing somewhat. Analysts are divided on the likelihood of Trump following through on his threats, but all agree that the situation demands careful monitoring.

"Trump's history demonstrates a willingness to leverage trade as a political tool," explains aviation analyst Eleanor Vance of North American Aerospace Insights. "While the Airbus partnership complicates matters, and Boeing's own challenges have lessened the immediate threat to their narrowbody aircraft line, Trump could still see targeting Bombardier as a way to score political points, particularly as the U.S. heads into its election cycle."

Another analyst, David Chen of Global Financial Strategies, points to the potential ripple effects. "This isn't just about Bombardier. It impacts thousands of jobs in Canada and the U.S., and disrupts supply chains that extend across both countries. A full-blown trade war in the aerospace sector would be detrimental to both economies."

Canada's Response and Potential Countermeasures

The Canadian government has yet to issue a formal response, but sources indicate that officials are actively engaging with U.S. counterparts to de-escalate the situation. Potential countermeasures could include retaliatory tariffs on U.S. goods, or a formal challenge through the World Trade Organization (WTO). However, the WTO's dispute resolution mechanism has been hampered by ongoing delays, making that route less appealing.

The A220's Future & Airbus's Position

Airbus, as the majority owner of the A220 program, will likely play a crucial role in navigating this crisis. The company has invested heavily in the A220 and its production facilities in both Canada and the U.S., and will be keen to protect its investment. It remains to be seen whether Airbus will lobby the U.S. government to avoid escalating the conflict, or whether it will take a more assertive stance in defense of its subsidiary. The future of the A220 program, a competitor to Boeing and Airbus's own offerings, now hangs in the balance.

This developing situation is a reminder of the fragility of international trade relations and the potential for political volatility to disrupt even the most established industries. Investors and industry stakeholders will be closely watching for further developments in the coming days and weeks.