Bombardier’s stock drops as the U.S.-Canada trade war intensifies. Here’s what Trump is targeting next.

Bombardier’s shares fell sharply on Tuesday after U.S. President Donald Trump threatened to ban the Canadian plane maker from U.S. federal contracts unless it commits to additional domestic manufacturing. The threat escalates a broader trade dispute between Washington and Ottawa, with aerospace now squarely in the crosshairs. For a company that derives a significant portion of its business from U.S. government and defense clients, the policy risk is direct and measurable.

The president’s demand signals that procurement is being used as a lever to reshape supply chains, not just tariffs. Investors are pricing in the possibility that Bombardier could lose access to lucrative contracts or face forced operational changes, such as shifting more assembly work south of the border. That would raise costs and complicate its existing production footprint in Quebec.

What to watch next is the tone of bilateral negotiations. Any sign of a broader truce on trade, or a specific carve-out for aerospace, could quickly reverse the stock’s slide. Conversely, if the rhetoric hardens into executive action, expect further volatility not just for Bombardier, but for any cross-border manufacturer reliant on U.S. government demand.