Stock Markets February 24, 2026

Transport Canada Clears Remaining Gulfstream Models After U.S. Tariff Threat

Certification of GVIII-700 and GVIII-800 follows a U.S. warning to penalize Canadian aircraft production

By Caleb Monroe GD
Transport Canada Clears Remaining Gulfstream Models After U.S. Tariff Threat
GD

Transport Canada issued certification for Gulfstream's largest business-jet models, the GVIII-700 and GVIII-800, after a U.S. presidential warning that Canada had improperly withheld approvals. The move completes approvals for models raised in the dispute after earlier clearance of the GVII-G500 and GVII-G600.

Key Points

  • Transport Canada certified Gulfstream's GVIII-700 and GVIII-800 on Monday, completing approvals for the models named in the dispute.
  • The certifications follow a Jan. 29 warning from U.S. President Donald Trump, who said Canada had "wrongfully, illegally" refused to certify certain Gulfstream jets and threatened decertification and a 50% tariff on Canadian-made aircraft.
  • Canada had previously approved the GVII-G500 and GVII-G600 on Feb. 15; the jets involved are produced by Gulfstream, a unit of General Dynamics.

Canada's aviation regulator confirmed certification for the remaining Gulfstream private-jet models on Monday, granting approvals for the GVIII-700 and GVIII-800. Those two types represent the largest business aircraft produced by Gulfstream, the business-jet unit of General Dynamics.

The certifications come in the wake of a public threat from U.S. President Donald Trump, who on Jan. 29 accused Canada of having "wrongfully, illegally" refused to certify certain Gulfstream jets. In that statement, the president warned that, unless the issue was resolved, the United States could move to decertify all aircraft produced in Canada and impose a 50% tariff on Canadian-made aircraft.

Mr. Trump's remarks targeted Bombardier Inc. explicitly, on account of the company's aircraft manufacturing presence in Canada. His statement indicated the U.S. would take action affecting Canadian aviation if the certification disagreements were not addressed.

Earlier in February, Canada approved two other Gulfstream models that had been cited by the president - the GVII-G500 and GVII-G600 - with those certifications granted on Feb. 15. Together with Monday's certifications for the GVIII-700 and GVIII-800, Transport Canada has now cleared the Gulfstream models referenced in the dispute.

General Dynamics' Gulfstream division is the manufacturer of the business jets at the center of this certification disagreement. The recent approvals finalize the set of Gulfstream types specifically mentioned during the public exchange over certification and potential trade measures.


Context and procedural notes

Transport Canada's action on Monday completed formal approvals for the remaining Gulfstream models named in the public dispute. The sequence of approvals - the GVII-G500 and GVII-G600 on Feb. 15 followed by the GVIII-700 and GVIII-800 on Monday - corresponds to the set of aircraft highlighted during the presidential statements criticizing Canada's earlier certification stance.

The public communications cited in the dispute included a Jan. 29 statement from the U.S. president and subsequent certification steps taken by Transport Canada.


What remains clear

The certifications apply to specific Gulfstream models manufactured by General Dynamics' Gulfstream unit, and the dispute referenced Bombardier due to its manufacturing operations in Canada. The recent approvals address the particular models that were the focus of the dispute as laid out in the prior public statements.

Risks

  • The U.S. had threatened to decertify all aircraft made in Canada and impose a 50% tariff unless certification issues were resolved - a direct trade and regulatory risk affecting the aviation sector.
  • The public dispute singled out Bombardier because it manufactures aircraft in Canada, indicating potential exposure for Canadian aerospace manufacturers to retaliatory trade measures tied to certification disagreements.
  • Uncertainty had existed around the certification status of multiple Gulfstream models prior to the recent approvals, creating regulatory and market ambiguity for parties referenced in the dispute.

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