Trump Threatens Bombardier Sales Ban Amid US-Canada Trade Escalation
Bombardier's stock will likely come under pressure when markets reopen after the long weekend due to President Donald Trump's threat to ban its jets from being sold in the United States.
The move, announced on Truth Social, is a response to Canada's trade deficit with the US. However, experts argue that Trump's power to impose such a ban may be limited, as the FAA has already certified Bombardier planes for sale in the US, and they comply with the USMCA deal.
Bombardier's revenue and adjusted EBITDA have been increasing year-over-year, indicating improving fundamentals. The company also uses many US suppliers, including Pratt & Whitney, GE Aerospace, and Honeywell, which could be impacted if Bombardier's business slows down.
The technicals suggest a tradable bounce from the current bear-market weakness toward $343 as fears fade. However, if Trump actually gets a legally enforceable sales restriction in the US, it could cut deliveries and trigger a real earnings hit for the company.