- Bombardier shares fell up to 7% before recovering to a 3% decline on the TSX.
- The drop followed Trump's threat to ban Bombardier jets from the US market.
- FAA has cleared Bombardier jets, raising questions on how Trump could block sales.
Bombardier shares dropped as much as 7% during morning trading on the Toronto Stock Exchange on Tuesday, before reducing some losses to trade down about 3%.
The stock decline comes after US President Donald Trump threatened to bar the Canadian company that makes business jets from the US market entirely in a social media post.
Bombardier shares opened 6.4% lower on the Toronto Stock Exchange before paring some losses.
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Given that the US Federal Aviation Administration has cleared Bombardier private jets, it is unclear how Trump will prevent their delivery to American consumers. Trump's wider trade war, which has imposed duties on other industries, has mostly spared the aerospace industry.
As his growing trade battle with Canada becomes a problem in some areas ahead of the November midterm elections, Trump has also encountered some internal opposition from members of his own Republican Party.
Bombardier employs 3,500 Americans, has 2,800 suppliers nationwide, and manufactures parts in historically Republican states like Texas. Additionally, a factory at Bombardier's US-based defence section in Wichita, Kansas, militarises business jets made in Canada for defence contracts.
On Monday night, Congressman Ron Estes, who represents Kansas's fourth district, stated on the social media platform X that he is against aerospace tariffs and praised the Canadian planemaker's contribution to his state.
“Wichita has long been at the forefront of global aerospace, and Bombardier's impact locally plays a critical role in our region's dominance. Beyond the talented men and women that work there, Bombardier supports an extensive American supply chain, boasts maintenance and repair capabilities across the U.S., and is trusted by our military for critical national security missions," Ron posted on his X handle.
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"I will always advocate for policies that keep these manufacturing jobs in Kansas, expand opportunities for our workforce, and demonstrate why our state is the premier location to invest and grow in aerospace," he further added.
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