Bombardier shares fall after latest Trump attack — SkimNews
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- Bombardier shares fell 7% to $293.49 in heavy Toronto Stock Exchange trading Tuesday after Trump floated blocking the company’s U.S. sales.
- Trump wrote that Bombardier products were not good enough and that the company must build in the U.S.; analysts said no legal mechanism for a ban had been identified.
- Canada imposed retaliatory tariffs on $28 billion of U.S. imports as Bombardier sells more than half its production volume into the U.S. market.
- Bombardier has 2,800 U.S. suppliers and warned that new American duties would probably cause more job and layoff pain in the U.S. than in Canada.
- U.S. Department of Commerce concluded its July Section 232 investigation by finding aerospace imports a national-security threat, while Canadian aerospace exports remain tariff-free under the USMCA exemption.
- Aerospace Industries Association says the U.S. aerospace and defence sector has maintained a positive trade surplus for more than 70 years and is the country’s only manufacturing industry with a positive trade balance.
- Boeing filed the 2017 complaint that triggered 292% U.S. tariffs on Bombardier; the penalties were later overturned, and the fallout led Bombardier to sell a majority stake in its C Series program to Airbus.
Why it matters: The dispute is not abstract for either country: Bombardier sells more than half its production volume into the United States, has 2,800 American suppliers and says new duties would probably cause more job and layoff pain south of the border than in Canada.
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