Canadian regulators have approved Gulfstream’s newest business jets shortly after U.S. President Donald Trump threatened to impose new tariffs on the aircraft in Canada. Transport Canada officially certified Gulfstream’s G700 and G800 jets on Monday, following the recent approval of two older Gulfstream models. Trump had previously warned of decertifying and imposing tariffs on all Canadian-made planes if the government did not authorize the four Gulfstream luxury aircraft, intensifying trade tensions between the two countries.
Despite concerns raised by the U.S. Federal Aviation Administration (FAA) regarding de-icing issues, Transport Canada gave the green light to the G700 and G800 jets. The FAA granted conditional certification to these models in 2024, with Gulfstream, a subsidiary of General Dynamics, having until the end of this year to demonstrate their proper functioning under potential icy conditions in the fuel system.
Trump’s proposed action of decertifying planes, a responsibility typically held by the FAA rather than the President’s office, was met with skepticism from experts as it could adversely impact plane manufacturers, airlines, and travelers on both sides of the border. The grounding of planes by regulators historically pertains to safety concerns, as seen with the Boeing 737 Max 8 following fatal crashes.
Gulfstream’s certification by Transport Canada amidst Trump’s tariff threats underscores the competitive landscape between Bombardier and Gulfstream, with the Global series vying against Gulfstream’s latest offerings. Bombardier, a major player in the aerospace industry, employs thousands in the U.S. and heavily relies on American suppliers. Additionally, the U.S. holds a significant trade surplus with Canada in aerospace, differing from other trade imbalances cited by Trump as justification for levies.
Notable Canadian aircraft manufacturers include Bombardier, De Havilland Canada, Airbus for A220 single-aisle jets, and Bell Textron for helicopters. The ongoing dynamics in the aerospace sector reflect the complexities of international trade relations.