Transport Canada has certified Gulfstream G500 and G600 jets, document says | ReutersSkip to main content[Exclusive news, data and analytics for financial market professionalsLearn more aboutRefinitiv]A Gulfstream Aerospace G500 aircraft arrives at the 54th International Paris Airshow at Le Bourget Airport near Paris, France, June 18, 2023. REUTERS/Benoit Tessier [Purchase Licensing Rights, opens new tab]MONTREAL, Feb 20 (Reuters) - Transport Canada has certified General Dynamics [(GD.N), opens new tab] Gul ...

Group 1 - President Trump threatened Canada with a 50% tariff on aircraft sold in the U.S. as part of an ongoing trade dispute, following a previous threat of a 100% tariff if Canada proceeded with a trade deal with China [1] - The threat was a response to Canada's refusal to certify jets from Gulfstream Aerospace, with Trump stating that the U.S. would decertify all Canadian aircraft, including those from Bombardier [1] - There are currently 150 Bombardier Global Express aircraft registered in the U.S., operated by 115 operators, highlighting the significance of this market for Bombardier [1] Group 2 - Bombardier has noted the president's threat and is in contact with the Canadian government, asserting that its aircraft meet FAA standards and that it is expanding U.S. operations [1] - The potential decertification of Bombardier aircraft is unprecedented and raises concerns about safety and trade implications, as certification is a critical step for aircraft operation [1] - Other major Canadian aircraft manufacturers include De Havilland Aircraft of Canada and Airbus, which also have significant operations in the U.S. market [1]

Core Viewpoint - President Trump threatens to decertify Canadian-made aircraft and impose a 50% tariff unless Canada certifies Gulfstream jets, accusing Canada of blocking certification while allowing its own planes access to the U.S. market [1][2]. Group 1: Aircraft Certification Dispute - The dispute revolves around the aircraft certification process, which determines whether planes can be sold and operated in a country [1]. - Trump claims Canada has illegally refused to certify Gulfstream jets, which he describes as technologically advanced [2]. - He asserts that Canada is effectively prohibiting the sale of Gulfstream products through the certification process [2]. Group 2: Proposed Tariffs and Impact - Trump announced that if the situation is not corrected, he will impose a 50% tariff on all aircraft sold into the U.S. from Canada [2]. - It remains unclear which specific aircraft, beyond Bombardier's Global Express line, would be affected by the proposed tariffs [5]. - As of early Friday, over 400 Canadian-made aircraft were operating to and from U.S. airports, with 150 Global Express aircraft registered in the U.S. [5]. Group 3: Regulatory Authority and Responses - The authority to decertify aircraft rests with the FAA, and it is uncertain how Trump would implement such a decertification [9]. - The Federal Aviation Administration and the European Union Aviation Safety Agency have certified the Gulfstream G800 jet, while Transport Canada has not responded to requests for comment [8].

Core Viewpoint - The U.S. is decertifying Bombardier Global Express business jets and threatening 50% import tariffs on other Canadian-made aircraft until Canada certifies compliance [1] Group 1: Company Impact - Bombardier's Global Express business jets are facing decertification by the U.S. government, which could significantly impact the company's sales and market position [1] - The potential 50% import tariffs on other aircraft made in Canada could lead to increased costs for consumers and reduced competitiveness for Canadian manufacturers in the U.S. market [1] Group 2: Industry Implications - The decision to decertify and impose tariffs may lead to heightened tensions in U.S.-Canada trade relations, affecting the broader aerospace industry [1] - Other Canadian aircraft manufacturers may also be affected by the tariffs, which could disrupt supply chains and impact pricing strategies within the industry [1]