Canada’s transport regulator approved Gulfstream’s latest business jets on Monday, ending a trade dispute with President Donald Trump that threatened to ground all Canadian-made aircraft. Transport Canada certified the G700 and G800 models weeks after Trump threatened to decertify Canadian aircraft and impose a 50 percent tariff unless the country approved the planes made by Gulfstream Aerospace, a subsidiary of General Dynamics.
The approval represents another escalation in trade tensions between the United States and Canada, where Trump has repeatedly used threats of tariffs and regulatory decertification to force policy decisions by trading partners.
Marie-Justine Torres, a spokeswoman for Canada’s transport minister, confirmed on Tuesday that Transport Canada had granted the certification. A Transport Canada database entry showed the planes were certified on Monday. The agency approved the G700 and G800 roughly a week after certifying two older Gulfstream models.
Trump’s Tariff Threat
Trump had threatened the action in late January, saying he would decertify all Canadian aircraft and impose a 50 percent tariff in retaliation for what he said was Canada’s refusal to certify Gulfstream jets. He specifically singled out Bombardier Inc., Canada’s largest aircraft manufacturer, as facing the penalties.
“If, for any reason, this situation is not immediately corrected, I am going to charge Canada a 50% Tariff on any and all Aircraft sold into the United States of America,” Trump said in a post last month.
FAA’s Conditional Certification
The Federal Aviation Administration had previously granted the G700 and G800 conditional certification in 2024. The FAA said at that time that Gulfstream would need to demonstrate by the end of this year that the planes function “properly … where ice may form in the fuel system.” Transport Canada approved the planes despite the same de-icing concerns that led the FAA to condition its approval.
Market Rivalry and Safety Questions
Bombardier’s Global series competes directly with Gulfstream’s latest models in the high-end aircraft market, both targeting sales to wealthy executives and corporations. John Gradek, who teaches aviation management at McGill University, said that certification decisions should be based on safety. “It would be unprecedented to decertify for trade reasons,” Gradek said.