The trade squabbles between the United States and Canada continue. Canada's economy is heavily dependent on the United States, and the Canadians also live comfortably under America's defense umbrella, but some of Canada's governing clique seem not to have assimilated this information yet.
In the latest round of trade negotiations, President Trump on Monday informed the Canadian aerospace company Bombardier that they would no longer be able to sell their aircraft in the United States unless they build them in the United States.
President Donald Trump said Monday that Canadian aerospace manufacturer Bombardier would no longer be allowed to sell its products in the United States unless it manufactures them in the country.
"NO MORE SELLING BOMBARDIER IN THE UNITED STATES!" Trump wrote on Truth Social. "Their products aren't good enough!"
Note that this isn't the first volley the president has launched at Canada and at Bombardier.
In January, Trump said the U.S. was decertifying Bombardier Global Express business jets and threatened a 50% tariff on all aircraft made in Canada unless the country's regulator certified several Gulfstream models.
Neither occurred, but the following month, Canada certified several Gulfstream planes.
So, the president's warnings do seem to be having some persuasive effect. We'll have to wait and see how convincing the latest broadside is.
There's just one catch: While Section 232 of the Trade Expansion Act of 1962 does give the president the power to unilaterally halt the importation of an aircraft from a foreign supplier, that authority is limited to imports that present a threat to national security. The Act has been invoked before, but mostly in commodities, not finished products; materials like aluminum and steel have been blocked from import under this section.
It seems certain there will be a legal challenge. But meanwhile, Bombardier may be suffering a serious loss of revenue.
"Over 50% of their revenue comes from the United States," Trump added. "They live off American Buyers, American Companies, American Airports, and American Service — All while Canada blocks our GREAT American Banks, and Companies, throughout the U.S.A."
"They even blocked Gulfstream Aerospace from doing business in Canada — Completely unjust and unfair!" Trump continued. "That Era is OVER! If they want our Market, they must build here, and stop treating America like a 'piggybank.'
If that much is accurate, then this would appear to be reactive, rather than proactive.
The president made another salient point:
Trump encouraged people to "buy American."
"FLY ON AMERICAN AIRLINERS," he wrote. "ENJOY AMERICAN LIQUOR AND BEVERAGES. SAIL ON LAKE AMERICA. AMERICA FIRST!"
Well, you heard, or rather, read the man. Enjoy American liquor and beverages. That comes right from the top.
It's in the interests of both the United States and Canada to have good trade relations. The two nations are something unheard of in human history: Two nations sharing a land border that spans over 3,000 miles, without even including the Alaska/Yukon Territory border. These borders are demilitarized and open to legal passage, and there has been no armed conflict between the USA and Canada since the War of 1812. But that trade, just like trade with any nation anywhere in the world, should be unfettered and gainful for both sides. At present, President Trump's stance is that our trade with Canada is out of whack. So, the president is delivering more whack, and Bombardier is going to be on the receiving end. At least for now.
You can view President Trump's Truth Social post below.
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