Investing.com -- A potential ban on Bombardier aircraft sales in the United States could hit the Canadian jet maker's largest market and disrupt an aerospace supply chain spanning thousands of U.S. companies, BofA analysts said.
The issue follows President Donald Trump's statement that Bombardier should no longer sell aircraft in the U.S. Bombardier jets sold there are certified by the Federal Aviation Administration, and most aerospace goods produced in Canada and Mexico are exempt from U.S. tariffs.
The U.S. accounts for about 45% of the global business-jet market and is Bombardier's largest individual market. The company delivers roughly 80 to 100 aircraft there annually, compared with total deliveries of around 155. Its 2026 guidance calls for more than 157 aircraft.
A halt to U.S. sales could also affect American suppliers. Bombardier's supply chain includes roughly 2,800 U.S. companies across 47 states and generates about $2.5 billion in annual U.S. purchases.
GE Aerospace supplies engines for Bombardier's Global 7500 and 8000 aircraft, Honeywell powers the Challenger 300, 350 and 3500 family, and RTX's Collins Aerospace supplies avionics across the Global and Challenger ranges.
Trade tensions could also affect U.S. defense contractors if Canada shifts future procurement toward European or Asian suppliers.
Programs potentially exposed include Canada's planned purchase of 88 Lockheed Martin F-35A fighters, with an acquisition budget of about C$27.7 billion. Only 16 are firmly ordered, and Ottawa has considered Saab's Gripen as a possible partial alternative.
Canada also has commitments involving Boeing's P-8A Poseidon and General Atomics' MQ-9B SkyGuardian drones.
A complete cancellation of Canada's outstanding U.S. defense contracts is considered unrealistic, but future purchases could gradually shift toward other suppliers if trade relations deteriorate.
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