Bombardier CEO fears US could target firm if Canada scraps jet deal

Bombardier CEO Eric Martel said on Monday he was concerned Washington could target the private planemaker's U.S. contracts if Canada cancels a C$19b deal for 88 Lockheed Martin F-35 fighter jets. Canada, locked in a trade war with the United States, is reviewing the contract for the jets. "Effectively, we could be targeted. This is my concern," Martel told reporters in Montreal after a speech hosted by the Canadian Club. In October, Montreal-based Bombardier announced the delivery of an eighth jet to the United States Air Force as part of a deal with a potential value of $465m. The aircraft carry specialized communications platforms. U.S. President Donald Trump doubled down on Monday, saying he would not give exemptions to broader steel and aluminum duties, and pledged to introduce fresh reciprocal and sectoral tariffs on April 2. Canada's Defense Ministry, acting on a request from new Prime Minister Mark Carney, said it has made a legal commitment of funds for the first 16 F-35 aircraft but cited "the changing environment" as the reason for the review. "I am there to defend Bombardier, but I understand why the new prime minister is asking these questions," Martel said. Martel's comments highlight the complexity of a trade war for the integrated aerospace sector, which risks getting caught up in an earlier threat by Trump to impose 25% tariffs on all imports from Canada and Mexico. It is unclear whether a U.S. exemption for Canadian and Mexican goods like Bombardier's planes that comply with the United States-Mexico-Canada Agreement (USMCA) will be extended past April 2.<br/>