President Donald Trump announced a 50% tariff on Canadian-made aircraft entering the U.S., citing Canada’s refusal to certify certain Gulfstream jets. The move targets Bombardier Inc and all Canadian aerospace exports until certification issues are resolved.

The decision deepens trade tensions between the U.S. and Canada, escalating a dispute that began shortly after Trump took office. It also follows his recent threat of 100% tariffs if Canada proceeds with a trade deal with China, raising concerns over broader economic retaliation.

Market watchers expect disruptions in the aviation supply chain, particularly affecting Bombardier's Global Express models. Analysts warn that retaliatory measures from Canada could further strain North American trade relations and impact companies reliant on cross-border manufacturing.

Investors should monitor developments closely as trade uncertainty grows.