Trump Threatens to Ban Bombardier Jets Amid US-Canada Tensions

Bombardier stock is under pressure as President Donald Trump announced that the US will prevent Bombardier from selling its jets in the United States due to escalating tensions with Canada. The threat, however, may not have a significant impact on the company's business.

The FAA has already certified all Bombardier planes sold in the US, and they comply with the USMCA deal that Trump negotiated in his first term. Any real ban would need congressional approval and would likely be challenged in court.

Bombardier's fundamentals are improving, with revenue and adjusted EBITDA up year-over-year. The company also has a large presence in the United States, with over 1,000 employees in the country, and uses many US suppliers, including Pratt & Whitney, GE Aerospace, and Honeywell.

The potential ban would not only affect Bombardier but also its US suppliers, who could see a decline in demand. The company's recent earnings report showed steady growth, with revenue rising from $2.03 billion to $2.15 billion in the second quarter of this year.