U.S. President Donald Trump has retracted his previous threat to prohibit the sale of Bombardier planes in the United States, easing tensions in the aerospace industry following recent trade war escalations. During a campaign rally on Monday, Trump acknowledged Bombardier’s U.S. presence, particularly in Kansas, where the company employs 1,500 workers.
Trump’s change in stance came after a phone call from Kansas Republican Sen. Roger Marshall, as Kansas gears up for a highly contested political landscape ahead of the upcoming midterm elections. The state has become a battleground as Republicans and Democrats vie for control.
Last month, Trump had indicated that Bombardier would be banned from selling aircraft in the U.S. unless it relocated its operations there. However, Bombardier emphasized its significant contribution to the American economy, highlighting its substantial financial support to U.S. suppliers and investments in job creation.
Despite the regulatory uncertainty being lifted, Bombardier shares saw a positive response in the market, with a notable increase in value. The threat had not impacted demand for Bombardier’s luxury jets among American customers in recent weeks, according to industry analysts.
The aerospace industry’s deep integration across North America and globally underscores the importance of continued collaboration. Analysts note that a ban on Bombardier would have had far-reaching consequences, leading to revenue and job losses for American suppliers and causing disruption for jet fleet operators awaiting deliveries.
Trump’s reversal on the Bombardier issue followed retaliatory measures between the U.S. and Canada, with both countries imposing tariffs on various goods. This recent development marked the second time this year that Bombardier found itself in the midst of trade tensions initiated by the U.S. administration.