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Canadian aircraft manufacturer Bombardier has postponed its financial forecasts for the current year, citing concerns over potential tariffs imposed by US President Donald Trump that could disrupt the company’s operations.
Bombardier, a major producer of business jets and heavily reliant on US sales, explained that the uncertainty surrounding tariffs led to the delay in issuing guidance.
The Montreal-based company informed investors of the need for more time to evaluate the direct and indirect impacts of tariffs on its business, as well as any retaliatory measures that may be implemented.
President Trump’s announcement of a 25% tariff on imports had left Canadian businesses in shock, prompting Prime Minister Justin Trudeau to negotiate a 30-day delay before its enforcement.
Bombardier’s CEO, Éric Martel, disclosed that the company has prepared contingency plans for various scenarios to address potential disruptions caused by tariffs on deliveries to the US.
Trudeau is set to host a summit with business leaders to discuss strategies for enhancing Canada’s trade relations amid the tariff threat.
The aerospace industry has cautioned that tariffs could disrupt supply chains, exacerbating existing challenges in material shortages and production delays.
Canada’s Aerospace Industries Association emphasized the interconnectedness of the Canadian and US supply chains, warning that trade barriers could hinder economic growth and job creation on both sides of the border.
Despite the uncertainties, Martel remains optimistic about Bombardier’s resilience, citing strong demand for new aircraft and a robust order backlog extending into late 2026 and early 2027.
The company reported positive fourth-quarter results, with revenues up 8% to $8.7 billion and adjusted earnings before tax increasing by 11% year-on-year.
While acknowledging the challenges posed by tariffs, Martel reaffirmed Bombardier’s commitment to maintaining market momentum and meeting customer demands.
“We had ambitious plans for this year, but the current circumstances require us to proceed with caution,” Martel concluded, emphasizing the need for strategic decision-making in navigating the uncertainties ahead.