Canada Aims to Calm U.S. Tensions Over Gulfstream Jet Certification

Marcus Wong, Economy & Markets Analyst (Toronto)
5 Min Read
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In a bid to ease rising tensions with the United States, the Canadian government is actively addressing safety certification issues surrounding General Dynamics Corp.’s GD-N Gulfstream jets. This follows a sharp rebuke from U.S. President Donald Trump, who accused Canada of stalling on certification and threatened retaliatory measures against Canadian aircraft manufacturers, including Bombardier Inc.

Government Response to U.S. Concerns

Transport Canada is making strides to resolve the certification impasse, as highlighted by spokesperson Hicham Ayoun in a recent statement. Ayoun indicated that Canada is collaborating closely with the U.S. Federal Aviation Administration (FAA), Bombardier, and General Dynamics to ensure both safety and regulatory adherence while preserving market access across the border.

Transport Minister Steven MacKinnon underscored the long-standing partnership between Canada and the FAA in aircraft certification matters. He assured that he has been kept informed about the Gulfstream approvals and has engaged in discussions with industry stakeholders, although he noted that he does not interfere with the certification process itself. “We’re communicating with both of the manufacturers and all the people in the industry to make sure that everyone understands the timeline,” MacKinnon stated during a media briefing in Ottawa. He expressed optimism that any previous uncertainties regarding the situation have been clarified.

Trump’s Threats Spark Industry Alarm

Trump’s comments last Thursday sent shockwaves through the Canadian aerospace sector. He announced via social media that the U.S. intends to decertify Bombardier’s Global Express jets and “all aircraft made in Canada” until the Gulfstream jets receive approval. The President claimed that Canada has “wrongfully, illegally and steadfastly refused” to certify four Gulfstream models and warned of a potential 50% tariff on Canadian aircraft entering the U.S. market if the matter is not swiftly resolved.

This announcement raised serious concerns among leaders in the aviation industry on both sides of the border, with some experts suggesting that Trump’s remarks could undermine the integrity of safety oversight. Despite Trump’s assertions, aviation specialists confirmed that the President lacks the authority to unilaterally decertify planes.

Uncertainties in the Certification Process

FAA chief Bryan Bedford, a Trump appointee, refrained from confirming whether the agency would revoke certifications for Canadian-made aircraft, which include Bombardier’s Global and Challenger jets, as well as Airbus SA’s A220 and De Havilland turboprops. Nonetheless, he did express concerns over the certification processes of other nations, questioning whether they allocate adequate resources to U.S. products compared to foreign ones. “Our concern is whether or not sufficient resources are being applied to U.S. products equal to the resources that we’re applying to certify foreign products,” Bedford remarked at the Changi Aviation Summit in Singapore.

U.S. and European authorities have already certified Gulfstream’s G700 and G800 models, albeit with a temporary exemption until the end of 2026 to complete additional testing related to fuel system ice issues. Canada, however, is still in the process of evaluating these aircraft, which has contributed to the ongoing friction.

Impact on Bombardier and the Aerospace Sector

Should the U.S. proceed with decertification or impose tariffs, Bombardier could face significant challenges, given its position as Gulfstream’s main competitor in the business jet market. Fortunately for Bombardier, the immediate threats appear to be subsiding, as evidenced by a rebound in the company’s share price following a 6% decline last Friday.

Why it Matters

The ongoing dispute over aircraft certification not only has potential economic ramifications for Canadian manufacturers but also underscores the delicate balance of international trade relations. As the aerospace industry grapples with these challenges, the outcome of this situation could shape future regulatory practices and trade policies, highlighting the importance of maintaining collaborative efforts between nations to ensure safety and competitiveness in the global marketplace.

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