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Canada says that jet disputes can be resolved following the fall in Bombardier shares on Trump's threat

Canadian officials have said that they are working to resolve the dispute with the?U.S. After President Donald Trump threatened to decertify private jets and impose tariffs on Canada made aircraft,?shares? of Bombardier fell 5% at midday trading.

Trump said that sanctions would be applied unless Canada's transport regulator approved the latest business jets produced by U.S. competitor Gulfstream.

A White House official said that Trump did not suggest decertifying Canadian planes in use, but his warning of Thursday night sparked confusion and alarm for airline workers, aviation analysts and aerospace workers as well as buyers and owners private jets.

Melanie Joly, Canadian Industry Minister, told Canadian broadcaster CBC that the country's Transport minister is in touch with U.S. officials.

Joly stated, "We think that this problem can be solved." The certification process has been well underway, and the certification requirements were very recent.

BROADER TENSIONS

This dispute is part of a larger conflict between neighboring countries, after Canadian Prime Minister Mark Carney last week, citing U.S. Trade Policy, called on nations to accept that the rules-based world order?that Washington once championed, was over.

A source with knowledge of the situation said that he thought Trump's threats had to do with these tensions and not the loss of business for Gulfstream in Canada's small private aviation market. Officials in the industry said that any delays by Canada in certifying Gulfstream’s flagship G700 and G800 jets for large cabins would not be a barrier to sales.

Ehsan.Monfared, a Toronto aviation attorney at YYZ Law, said: "I've not seen any issue that would deter?purchasing behaviour."

He explained that a Canadian who wants to purchase a Gulfstream aircraft could place it in an American non-citizens trust and register it there while waiting for certification from Transport Canada.

Monfared stated that he didn't believe the regulator would punish U.S. aircraft.

Gulfstream Savannah, a General Dynamics division, and its parent company declined to comment. Transport Canada has not responded to a comment request.

Aircraft and aerospace components have largely avoided the brunt of Trump’s U.S. led trade war. Canadian-made planes, which comply with the USMCA agreement, continue to be exported south?of the border.

Trump announced Thursday night that he would "decertify their Bombardier Global Expresses and all Aircraft Made in Canada" until Gulfstream planes are certified.

In a Truth Social post, Trump stated that if the situation was not corrected immediately, he would charge Canada a tariff of 50% on all aircraft imported into the United States of America.

If this threat is carried out, it would have a dramatic impact on U.S. carriers such as American Airlines and Delta Air Lines, who rely heavily on Canadian-made aircrafts for their regional services.

This confusion also spread to buyers and operators in the United States - the largest market for business aviation in the world.

Amanda Applegate of Soar Aviation Law, an American specialist in business aviation laws, stated on Friday that the post had prompted questions from clients who owned, or wanted to buy, Bombardier aircraft.

POLITICAL WEAPON

Decertifying aircraft is dangerous and can lead to job losses. Bombardier employs 3,000 people in the U.S.

The IAM stated that "Aircraft certification is not meant to be used as a weapon of political or economic influence, but to ensure safety." Cirium, a data provider, has reported that there are 150 Global Express planes registered in the U.S. and operated by 115 operators. There are also 5,425 different types of aircraft made in Canada registered in the U.S.

(source: Reuters)