Trump gave direct warning to Canada
The US and Canada, which are geographical neighbors and have been traditional allies, are now on the brink of a major trade war. This time the issue is high-profile jet planes flying in the sky. US President Donald Trump has given such a strict warning to Canada, which has created a stir in the entire aviation world. This matter is not limited to the governments of only two countries, but it is going to have a direct impact on the aviation industry and economy. If Trump follows through on his threat, Canada’s airline business could suffer a major blow.
Trump’s ultimatum, give the certificate or face consequences
Donald Trump has directly targeted the Canadian government through his social media platform ‘Truth Social’. They allege that Canada is deliberately not giving permission to fly the state-of-the-art jet planes of American company Gulfstream. Trump says that the certification of models like G500, G600, G700 and G800 is being unfairly stopped or slowed down.
Trump has called it a ploy against America and has given an ultimatum in clear words. He has said that if Canada does not change its attitude immediately, America will also not keep quiet. As part of the retaliatory action, the certification of jet planes of the famous Canadian company ‘Bombardier’ will be canceled in America. Not only this, a huge tariff of 50% will be imposed directly on Canadian aircraft.
Will air flights become expensive?
If this 50% tariff is actually implemented, its consequences will be extremely serious. Bombardier is a big name in the world of private jets and America is its biggest market. Due to imposition of such heavy duty, it will become very expensive for American customers to buy these planes. Industry experts believe that generally technical disputes related to certification are resolved jointly by the officials of the two countries. But it is a rare occurrence for a head of state to directly threaten a 50% tariff in public. This will not only worsen the balance sheets of the companies, but will also create an environment of uncertainty in the aviation sector.
Carney gave advice to America
This battle of planes is actually the result of the political tension that has been going on between the two countries for some time. Relations between Canadian Prime Minister Mark Carney and Donald Trump have turned sour. Recently, Carney had advised America that it should respect the sovereignty of Canada. This statement came when some separatist leaders of Canada’s Alberta province met US officials, which Canada considered a threat to its unity.
Tension increased further when Carney spoke of a breakdown in the global system in Davos. Trump considered this an attack on his policies and retaliated by saying that “Whatever Canada is today, it is because of America.” The matter did not stop here, there is contradiction between the two sides even over a phone call. The US Treasury Secretary claims that Carney tried to give clarification by calling, while Carney says that the call came from Trump. Such rhetoric has further complicated diplomatic relations.
China’s angle is also behind the whole controversy
China’s angle is also hidden behind this entire controversy. The Trump administration had earlier also warned Canada about trade relations with China. America suspects that Canada is growing closer to China. However, Carney has clarified that Canada is not working on any kind of ‘free-trade deal’ with China. But the way Trump had earlier talked about 100% tariff and now has threatened 50% tariff on planes, it is clear that America wants to make its neighbor agree to its terms by putting economic pressure on it.