MONTREAL (Reuters) – Bombardier CEO Eric Martel said on Monday he was concerned Washington could target the company’s U.S. contracts if Canada cancels a C$19-billion contract 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.
Last October, Bombardier’s defense arm announced the delivery of an eighth jet to the United States Air Force as part of a deal with a potential value of $465 million. The aircraft carry specialized communications platforms.
Martel said if the U.S. did impose tariffs that affect the company’s deliveries, one option for Bombardier would be to focus on deliveries first to non-U.S. clients, given it has a long order backlog.
He said he does not see U.S. tariffs on planes as likely or lasting a long time if applied.
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.
(Reporting by Allison Martell, David Ljunggren; Editing by Rod Nickel)
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