WASHINGTON — President Donald Trump has warned that the United States may impose a 50% tariff on aircraft sold by Canada in the U.S. market, escalating trade tensions between the two countries.
The warning comes amid ongoing disputes between Trump and Canadian Prime Minister Mark Carney and follows a series of unresolved trade disagreements between Washington and Ottawa.
Trump has criticized Canada’s trade policies, saying they disadvantage American businesses. The proposed tariff would directly affect the aerospace sector, a major industry for both countries.
Canada is home to a large aerospace industry that manufactures commercial and military aircraft, many of which are sold to U.S. buyers. A tariff of that size could raise costs for American airlines and other purchasers, potentially affecting pricing across the industry.
Trade analysts said higher aircraft costs could disrupt supply chains and have broader effects beyond aviation, given the close integration of U.S. and Canadian manufacturing.
The tariff threat comes as trade negotiations between the two countries continue with limited progress. Industry leaders and government officials have expressed concern that additional trade barriers could harm competitiveness in sectors that rely heavily on cross-border cooperation.
Canadian officials have not issued a formal response to the warning. Canada has previously challenged and retaliated against U.S. tariffs, raising the possibility of countermeasures if the proposal advances.
The United States and Canada maintain one of the world’s most interconnected trade relationships, particularly in aerospace, where many companies depend on access to the U.S. market.