Canadian aerospace company Bombardier (TSX:BBD.B) was pulled into the spotlight this week as trade tensions continued to rise. President Donald Trump posted on social media that Bombardier should build its planes in the United States if it wants to keep selling to American customers, saying the company needs to stop treating the country like a “piggybank.”
The comments come just as Canada prepares to move ahead with about $20 billion in retaliatory tariffs on more than 700 American products. Those tariffs were introduced after trade talks broke down and the U.S. placed 50% tariffs on some Canadian goods. U.S. Commerce Secretary Howard Lutnick said Canada was the one that disrupted negotiations for political reasons, while Prime Minister Mark Carney said Canada is ready to return to the table when the U.S. is prepared to do the same.
For Bombardier shareholders, this adds a fresh layer of uncertainty to what has otherwise been a strong comeback story. The company has turned things around in a big way over the past few years, with its share price climbing more than 550% over five years. Its market value is now close to $32 billion, and the stock is up 36% so far this year, currently trading around $315.
Still, any new barriers to selling in the U.S. could create real challenges for Bombardier, especially since the American market is such an important buyer of luxury business jets. Moving more production to the U.S. would also be expensive. At this point, it is not clear whether Trump’s warning will turn into actual policy, but the uncertainty could make the stock more volatile in the near term. For now, cautious investors may want to stay on the sidelines until there is more clarity around the tariff situation.
