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 bar the Canadian planemaker from federal contracts unless it makes new commitments to manufacture in the United States. The threat escalates an ongoing trade dispute between Washington and Ottawa, with aerospace now squarely in the crosshairs. For Bombardier, which derives a significant portion of its revenue from U.S. government and defense-related orders, the prospect of losing access to that market introduces a fresh layer of regulatory and political risk.

The development underscores how trade policy has become a direct variable in corporate valuations. Investors are now weighing the likelihood that Bombardier will expand its U.S. footprint—a costly but potentially necessary concession—against the possibility of a prolonged stalemate that could restrict its order book. What to watch: any official statement from the company regarding new U.S. investments, as well as whether the administration extends similar pressure to other Canadian exporters. For now, the market is pricing in uncertainty, not a resolution.