US President Donald Trump said he will announce 25% tariffs on all steel and aluminium imports.
Trump told press on a mid-air conference onboard the presidential aircraft Air Force One on February 9, 2025, as he travelled to the Super Bowl event. The tariffs will be formally announced Monday February 10, 2025, Trump said.
“Any steel coming into the United States is going to have a 25% tariff – aluminium too,” said Trump.
When asked what countries the steel tariffs would be imposed upon, Trump said, “everybody” and further clarified that Canada and Mexico were included.
The impact on the current supply chain climate remains to be seen, however previously proposed tariffs on jet sales to the US.
“If tariffs are instituted between the US, Canada, and Mexico,” said a Bloomberg Intelligence report on February 5, 2025, “business jets may be the most at risk within aerospace, with Bombardier likely the most exposed.”
With Bombardier’s customer base largely being based in the US, it will likely be the most exposed to tariffs on multiple fronts.
Bloomberg Intelligence analysts George Ferguson and Melissa Balzano said: “The tariff on purchases may be avoided by ownership in an offshore jurisdiction for some, though tax authorities could shut this down. If retaliatory tariffs are instituted, the impact soars as US manufacturers dominate engines and avionics and other components.”
The analysts are the largest concern as the highest price component of a new plane, though exposure can be found on other supplier fronts.
In addition, RTX will be exposed with its Pratt & Whitney Canada business which produces smaller jet engines and turboprops.
“It takes considerable time and work with the FAA to change the engine on a new built plane, making it likely that effects will be lower volume and discounting to retain sales,” the analysts added.