Donald Trump has escalated his trade dispute with Canada by declaring that Bombardier, the Canadian aerospace manufacturer, will no longer be permitted to sell aircraft in the United States unless it builds them domestically. The move follows the breakdown of US-Canada trade talks last month, after which Washington imposed a 50% tariff on more than $20 billion of Canadian goods, prompting Ottawa to introduce matching retaliatory tariffs that came into force on Tuesday. The announcement marks a significant deepening of tensions between the two countries and has already drawn criticism from within Trump's own party.

Trump paired the Bombardier threat with calls to "Buy American" and confirmed plans to rename Lake Ontario "Lake America". Bombardier, which had around 2,188 aircraft registered in the US as of January and operates roughly half its global fleet of over 5,100 planes there, said it remained committed to its American partnerships and workforce. Republican Senator Jerry Moran of Kansas, where Bombardier's US headquarters and a major defence facility employ over 1,000 people, pushed back against the policy, citing the company's importance to local jobs. Further tariffs are due to take effect on 1 January 2027, leaving both sides time to negotiate a resolution.