**MARKET ALERT: Aerospace Sector** **Date:** January 31, 2026 **Bombardier Slides on White House Tariff Threat** **The Event** Bombardier Inc. (BBD.B) shares plunged **9%** in Friday trading following a direct ultimatum from U.S. President Donald Trump. In a statement released Thursday night via Truth Social, the President threatened to "decertify" Bombardier’s large-cabin Global Express jets and impose a sweeping **50% import tariff** on all Canadian-made aircraft. **The Ultimatum** The proposed penalties are conditional. President Trump stated these measures will remain until Transport Canada grants full certification to rival U.S. jets manufactured by Gulfstream Aerospace (a General Dynamics subsidiary). The President specifically named the **Gulfstream G500, G600, G700, and G800** models, claiming Canadian regulators have "wrongfully, illegally, and steadfastly" blocked their entry into the domestic market. **Market Reaction (Friday, Jan 30)** * **Stock Impact:** Bombardier stock opened sharply lower, shedding approximately **9%** of its value in early trading on the Toronto Stock Exchange. * **Price Levels:** Class B shares fell significantly from the ~**CA$249** range, trading down to the **CA$232** level amid high volume. * **Volatility:** The sell-off reflects investor fear that a 50% levy would effectively price Bombardier out of the critical U.S. business jet market, its largest revenue driver. **The Dispute Context** * **Gulfstream Status:** The FAA certified the Gulfstream G700 in March 2024 and the G800 in April 2025. * **The Bottleneck:** Reports indicate the delay in Canada stems from technical disagreements—specifically regarding fuel system icing test exemptions granted by the FAA but not yet accepted by Transport Canada. * **Scope:** While the White House later clarified the threat applies to *new* aircraft rather than the existing fleet, the "decertification" language sparked immediate concerns for U.S. regional airlines operating Canadian-made CRJ series jets. **Sector Watch** Analysts warn this escalation could disrupt North American supply chains, noting that over **150** Bombardier Global Express jets are currently registered in the U.S. General Dynamics (Gulfstream’s parent company) remained relatively stable, outperforming the broader aerospace dip.