Trump's tariff threat on Canadian planes highlights trade and policy developments

President Donald Trump said he would impose 50 per cent tariffs on Canadian-made aircraft until Canada certifies certain Gulfstream jets, and the Bank of Canada held its policy rate at 2.25 per cent.

U.S. President Donald Trump announced he would impose 50 per cent tariffs on aircraft made in Canada until Canada certifies certain Gulfstream jets. Canadian aviation officials are reviewing documentation related to changes in some Gulfstream models. The Bank of Canada kept its benchmark interest rate at 2.25 per cent and described that level as appropriate. These items were reported alongside other trade and manufacturing developments. Key points: - President Donald Trump announced he would impose 50 per cent tariffs on aircraft made in Canada until Canadian certification of certain Gulfstream jets. - McGill aviation lecturer John Gradek said the Canadian regulator is reviewing paperwork on electronics and navigation changes to some Gulfstream models and has not decertified the aircraft. - The Bank of Canada held its policy rate at 2.25 per cent and provided limited guidance on the timing of future moves. Summary: These announcements contribute to trade and policy uncertainty that officials say is shaping economic forecasts. The aviation matter is currently under regulatory review and has not resulted in decertification. The Bank of Canada is maintaining its policy rate and offered limited forward guidance; other outcomes are undetermined at this time.