{"id":67055,"date":"2025-02-04T02:30:44","date_gmt":"2025-02-04T02:30:44","guid":{"rendered":"https:\/\/peraltafinancing.com\/aerospace\/canada-return-us-tariffs-affecting-aerospace-uas-and-firearms\/"},"modified":"2025-02-04T02:30:44","modified_gmt":"2025-02-04T02:30:44","slug":"canada-return-us-tariffs-affecting-aerospace-uas-and-firearms","status":"publish","type":"post","link":"https:\/\/fivemor.com\/?p=67055","title":{"rendered":"Canada return US tariffs: affecting aerospace, UAS, and firearms"},"content":{"rendered":"<p> <br \/>\n<\/p>\n<div>\n<div class=\"article-image\">\n<figure class=\"article-image__container\">\n                                    <picture><source media=\"(min-width: 990px)\" srcset=\"https:\/\/www.airport-technology.com\/wp-content\/uploads\/sites\/14\/2024\/11\/Trump-770x433.jpg\"\/><source media=\"(min-width: 430px)\" srcset=\"https:\/\/www.airport-technology.com\/wp-content\/uploads\/sites\/14\/2024\/11\/Trump-800x528.jpg\"\/><img decoding=\"async\" src=\"https:\/\/www.airport-technology.com\/wp-content\/uploads\/sites\/14\/2024\/11\/Trump-430x241.jpg\" alt=\"\"\/>\n                                    <\/picture><figcaption class=\"c-featured-image__description\"\/>\n                                <\/figure>\n<\/p><\/div>\n<p class=\"drop-cap\">The Canadian government will return tariffs on American goods after the new US government, led by President Donald Trump, imposed a 25% additional tariff on its northern neighbour on 1 February 2025.<\/p>\n<p>A day later, Ottawa announced a tariff of the same percentage on C$155bn ($105.5bn) worth of US-imported products. Notably, the retaliatory measure will impact a variety of aerospace parts, uncrewed systems, and firearms.<\/p>\n<p>It is unclear how disruptive these costs will be on US defence procurement specifically given the large commercial market for the items in America. Nonetheless, these three imports are still known to be produced for dual-use purposes.<\/p>\n<p>Such an exchange may be \u2013 a Washington think tank <a href=\"https:\/\/www.csis.org\/analysis\/canada-us-defence-relations-turbulent-time#:~:text=Canada%20and%20the%20United%20States,and%20likely%20do%20even%20more.\" target=\"_blank\">report<\/a> predicted in October 2024 \u2013 \u201can historic low\u201d between the two countries.<\/p>\n<p>GlobalData, a leading intelligence consultancy, reveals that the US government is currently in the process of acquiring two different Bombardier Electronic Warfare (EW) aircraft \u2013 based on the commerical Global 6500 and the Challenger 650 \u2013 from Canada, valued at $642m and $592m respectively.<\/p>\n<h2 class=\"wp-block-heading\" id=\"h-us-still-needs-its-allies\">US still needs its allies<\/h2>\n<p>It does not end with surveillance aircraft. Canada is the largest export market for 36 American states, and is among the top three for 46 of them, with 43 exporting over\u00a0$1bn to Canada every year.<\/p>\n<div class=\"gdm-company-profile-unit\" id=\"company_profile_form\">\n<p class=\"gdm-company-profile-unit__sub-heading\">Access the most comprehensive Company Profiles<br \/>\n            on the market, powered by GlobalData. Save hours of research. 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However, we want you to make the most<br \/>\n                        beneficial<br \/>\n                        decision for your business, so we offer a free sample that you can download by<br \/>\n                        submitting the below form\n                    <\/p>\n<p>                    <span class=\"gdm-company-profile-unit__text\">By GlobalData<\/span><\/p>\n<form id=\"company-profile-unit-form\" class=\"gdm-form gdm-company-profile-unit__form\">\n<div class=\"reveal-form__wrapper\">\n<p>                                <select name=\"country\" errormessage=\"Please Pick a Country\" id=\"Country\" class=\"form__select\"><option value=\"0\" id=\"country-label\" selected=\"\" disabled=\"\" hidden=\"\"><br \/>\n                                        Country * <\/option><option value=\"UK\">UK<\/option><option value=\"USA\">USA<\/option><option value=\"Afghanistan\">Afghanistan<\/option><option value=\"\u00c5land Islands\">\u00c5land Islands<\/option><option value=\"Albania\">Albania<\/option><option value=\"Algeria\">Algeria<\/option><option value=\"American Samoa\">American Samoa<\/option><option value=\"Andorra\">Andorra<\/option><option value=\"Angola\">Angola<\/option><option value=\"Anguilla\">Anguilla<\/option><option value=\"Antarctica\">Antarctica<\/option><option value=\"Antigua and Barbuda\">Antigua and Barbuda<\/option><option value=\"Argentina\">Argentina<\/option><option value=\"Armenia\">Armenia<\/option><option value=\"Aruba\">Aruba<\/option><option value=\"Australia\">Australia<\/option><option value=\"Austria\">Austria<\/option><option value=\"Azerbaijan\">Azerbaijan<\/option><option value=\"Bahamas\">Bahamas<\/option><option value=\"Bahrain\">Bahrain<\/option><option value=\"Bangladesh\">Bangladesh<\/option><option value=\"Barbados\">Barbados<\/option><option value=\"Belarus\">Belarus<\/option><option value=\"Belgium\">Belgium<\/option><option value=\"Belize\">Belize<\/option><option 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Islands<\/option><option value=\"Costa Rica\">Costa Rica<\/option><option value=\"C\u00f4te d\" ivoire=\"\">C\u00f4te d&#8221;Ivoire<\/option><option value=\"Croatia\">Croatia<\/option><option value=\"Cuba\">Cuba<\/option><option value=\"Cura\u00e7ao\">Cura\u00e7ao<\/option><option value=\"Cyprus\">Cyprus<\/option><option value=\"Czech Republic\">Czech Republic<\/option><option value=\"Denmark\">Denmark<\/option><option value=\"Djibouti\">Djibouti<\/option><option value=\"Dominica\">Dominica<\/option><option value=\"Dominican Republic\">Dominican Republic<\/option><option value=\"Ecuador\">Ecuador<\/option><option value=\"Egypt\">Egypt<\/option><option value=\"El Salvador\">El Salvador<\/option><option value=\"Equatorial Guinea\">Equatorial Guinea<\/option><option value=\"Eritrea\">Eritrea<\/option><option value=\"Estonia\">Estonia<\/option><option value=\"Ethiopia\">Ethiopia<\/option><option value=\"Falkland Islands\">Falkland Islands<\/option><option value=\"Faroe Islands\">Faroe 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value=\"Guinea\">Guinea<\/option><option value=\"Guinea-Bissau\">Guinea-Bissau<\/option><option value=\"Guyana\">Guyana<\/option><option value=\"Haiti\">Haiti<\/option><option value=\"Heard Island and McDonald Islands\">Heard Island and<br \/>\n                                        McDonald<br \/>\n                                        Islands<br \/>\n                                    <\/option><option value=\"Holy See\">Holy See<\/option><option value=\"Honduras\">Honduras<\/option><option value=\"Hong Kong\">Hong Kong<\/option><option value=\"Hungary\">Hungary<\/option><option value=\"Iceland\">Iceland<\/option><option value=\"India\">India<\/option><option value=\"Indonesia\">Indonesia<\/option><option value=\"Iran\">Iran<\/option><option value=\"Iraq\">Iraq<\/option><option value=\"Ireland\">Ireland<\/option><option value=\"Isle of Man\">Isle of Man<\/option><option value=\"Israel\">Israel<\/option><option value=\"Italy\">Italy<\/option><option 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value=\"Oman\">Oman<\/option><option value=\"Pakistan\">Pakistan<\/option><option value=\"Palau\">Palau<\/option><option value=\"Palestinian Territory\">Palestinian Territory<\/option><option value=\"Panama\">Panama<\/option><option value=\"Papua New Guinea\">Papua New Guinea<\/option><option value=\"Paraguay\">Paraguay<\/option><option value=\"Peru\">Peru<\/option><option value=\"Philippines\">Philippines<\/option><option value=\"Pitcairn\">Pitcairn<\/option><option value=\"Poland\">Poland<\/option><option value=\"Portugal\">Portugal<\/option><option value=\"Puerto Rico\">Puerto Rico<\/option><option value=\"Qatar\">Qatar<\/option><option value=\"R\u00e9union\">R\u00e9union<\/option><option value=\"Romania\">Romania<\/option><option value=\"Russian Federation\">Russian Federation<\/option><option value=\"Rwanda\">Rwanda<\/option><option value=\"Saint Helena, Ascension and Tristan da Cunha\">Saint<br \/>\n                                        Helena,<br \/>\n                          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value=\"Retail\">Retail<\/option><option value=\"Sport\">Sport<\/option><option value=\"Technology\">Technology<\/option><option value=\"Telecom\">Telecom<\/option><option value=\"Transportation &amp; Logistics\">Transportation &amp;<br \/>\n                                        Logistics<\/option><option value=\"Travel, Tourism &amp; Hospitality\">Travel, Tourism &amp;<br \/>\n                                        Hospitality<\/option><option value=\"Venture Capital\">Venture Capital<\/option><\/select><br \/>\n                            <small\/>\n                        <\/p>\n<p>\n                        <input name=\"newsletter_opt_in\" class=\"gdm-checkbox\" type=\"checkbox\" id=\"newsletter_opt_in\" value=\"Yes\"\/><br \/>\n                        <label for=\"consent-box\">Tick here to opt out of curated industry news, reports, and event updates from Airport Technology.<\/label>\n                        <\/p>\n<p>                            <!--\n\n<div 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Our services are intended for corporate subscribers and you warrant that the email address submitted is your corporate email address.<\/span><\/p><\/div>\n<\/p><\/form>\n<\/p><\/div>\n<\/p><\/div>\n<\/p><\/div>\n<\/p><\/div>\n<p>Meanwhile, the US Department of Defense (DoD) has even been able to offset shortages in its war stocks in the near-term through purchase agreements with allies around the world, including Canada.<\/p>\n<p>In its \u2018<a href=\"https:\/\/ads.globaldata.com\/Analysis\/TableOfContents\/us-defense-market-2023-2028?ReportGeographyId=100244\" target=\"_blank\">US Defense Market Report<\/a>\u2019, GlobalData suggests that \u201clong-term solutions may require increased leverage of foreign manufacturing capabilities to ease pressure on domestic supply chains while capacity is expanded over the coming years.\u201d<\/p>\n<p>Evidence of such efforts emerged in November 2023, when the US Army awarded $1.5bn in contracts to nine companies located in the US, Canada, India, and Poland to accelerate production of 155mm shells in light of ongoing requirements.<\/p>\n<h2 class=\"wp-block-heading\" id=\"h-mutual-tariffs\">Mutual tariffs<\/h2>\n<p>President <a href=\"https:\/\/www.army-technology.com\/news\/no-way-back-from-us-china-decoupling-warns-globaldata\/\" target=\"_blank\">Trump\u2019s economic policy<\/a> involves a punch-up with allies and adversaries alike. His approach will deregulate industry and introduce tax cuts with one hand while weaponising tariffs with the other.<\/p>\n<p>In his inaugural speech, for the second time, Trump joked that his tariffs will derive funds from the rest of the world through an \u201c<a href=\"https:\/\/www.army-technology.com\/news\/trump-revokes-deia-programmes-across-us-military\/\" target=\"_blank\">external revenue service<\/a>,\u201d in contrast to the tax-collecting \u2018Internal Revenue Service\u2019 agency.<\/p>\n<blockquote class=\"wp-block-quote is-layout-flow wp-block-quote-is-layout-flow\">\n<p>\u201cAccess to the American market is a privilege.\u201d<\/p>\n<p><cite>White House fact sheet.<\/cite><\/p><\/blockquote>\n<p>The White House specified that the American tariffs were implemented to deter against the growing presence of Mexican drug cartels operating fentanyl and nitazene synthesis labs in Canada \u2013 citing an unnamed study.<\/p>\n<p>\u201cAccess to the American market is a privilege,\u201d the executive office declared. \u201cTariffs are a powerful, proven source of leverage for protecting the national interest.\u201d<\/p>\n<p>While trade accounts for 67% of Canada\u2019s gross domestic product (GDP) and 37% of China\u2019s GDP, it accounts for only 24% of US GDP. However, in 2023 the US trade deficit in goods was the world\u2019s largest at over $1tn.<\/p>\n<h2 class=\"wp-block-heading\" id=\"h-a-blow-but-not-a-bust\">A blow, but not a bust<\/h2>\n<p>Canada\u2019s defence procurement, <a href=\"https:\/\/ads.globaldata.com\/Analysis\/TableOfContents\/canada-defense-market-2023-2028?ReportGeographyId=100046\" target=\"_blank\">GlobalData intelligence<\/a> indicates, relies predominantly on the US defence industrial base:<\/p>\n<p>\u201cMany of [Canada\u2019s] programmes involve collaboration with foreign firms or the licensed production of foreign designs, produced with the cooperation of Canadian industry.<\/p>\n<p>\u201cThis reflects the broader characteristics of the Canadian defence market: strong ties to the industry of its US neighbour\u2026\u201d<\/p>\n<p>At present, Canada operates a wide range of American platforms and equipment, particularly in the Royal Canadian Air Force, including Humvee armoured vehicles, Tactical Armoured Patrol Vehicles, P-3C aircaft, F\/A-18s, KC-130H, T-6A Texan II, etc.<\/p>\n<figure class=\"wp-block-image size-full\"><img fetchpriority=\"high\" decoding=\"async\" width=\"800\" height=\"481\" src=\"https:\/\/www.airport-technology.com\/wp-content\/uploads\/sites\/14\/2025\/02\/RCAF-fighter.jpg\" alt=\"\" class=\"wp-image-155493\" srcset=\"https:\/\/www.airport-technology.com\/wp-content\/uploads\/sites\/14\/2025\/02\/RCAF-fighter.jpg 800w, https:\/\/www.airport-technology.com\/wp-content\/uploads\/sites\/14\/2025\/02\/RCAF-fighter-768x462.jpg 768w\" sizes=\"(max-width: 800px) 100vw, 800px\"\/><figcaption class=\"wp-element-caption\">A Royal Canadian Air Force CF-188 Hornet flies off the coast of Norway during Exercise Trident Juncture 18, 27 October 2018. Credit: US DoD<\/figcaption><\/figure>\n<p>Out of the nation\u2019s ongoing acquisitions, only one American platform resides in Canada\u2019s top three most expensive programmes: 88 F-35A combat aircraft from Lockheed Martin.<\/p>\n<p>There are other American platforms too, including the $293m Sikorsky CH-148 Cyclone helicopter programme and the $119m King Air 350ER EW aircraft from Textron.<\/p>\n<p>Yet, it is important to note that Canada has only really begun to modernise its ageing armed forces. The Canadian military\u2019s equipment list, according to GlobalData, reveals that details of many programmes \u2013 such as the Remotely Piloted Aircraft Systems project \u2013 have yet to be disclosed or awarded to a contractor.<\/p>\n<p>There is a silver lining: Canada may not be as reliant upon the US defence industry than is often assumed, and the country has space to pivot away from the American market.<\/p>\n<p><!-- Newsletter banner start --><\/p>\n<p><!-- <link rel=\"stylesheet\" href=\"\"> --><\/p>\n<div class=\"grid-container\">\n<section class=\"gdm-newsletter-banner__container\">\n<div class=\"grid-x gdm-newsletter-banner__wrapper-container gdm-newsletter-banner__wrapper-container--article\">\n<div class=\"cell large-9 gdm-newsletter-banner-info__wrapper\">\n<div class=\"gdm-newsletter-banner-logo__container\">\n                    <img decoding=\"async\" src=\"https:\/\/www.airport-technology.com\/wp-content\/themes\/goodlife-wp-B2B\/assets\/images\/newsletter-new.svg\" alt=\"Email newsletter icon\"\/>\n                <\/div>\n<p><h3 class=\"gdm-newsletter-banner__heading wp-noreslt\">Sign up for our daily news round-up!<\/h3>\n<h3 class=\"gdm-newsletter-banner__sub-heading\">Give your business an edge with our leading industry insights.<\/h3>\n<\/p><\/div>\n<\/p><\/div>\n<\/section>\n<\/div>\n<p><!-- Newsletter banner end --><\/p>\n<footer class=\"article-footer\">\n                                <!-- article-actions start --><\/p>\n<p><!-- .gdm-article-actions -->                                <!-- article-actions end --><br \/>\n                            <\/footer>\n<\/p><\/div>\n<p><script>\n  !function(f,b,e,v,n,t,s)\n  {if(f.fbq)return;n=f.fbq=function(){n.callMethod?\n  n.callMethod.apply(n,arguments):n.queue.push(arguments)};\n  if(!f._fbq)f._fbq=n;n.push=n;n.loaded=!0;n.version='2.0';\n  n.queue=[];t=b.createElement(e);t.async=!0;\n  t.src=v;s=b.getElementsByTagName(e)[0];\n  s.parentNode.insertBefore(t,s)}(window, document,'script',\n  'https:\/\/connect.facebook.net\/en_US\/fbevents.js');\n  fbq('init', '1175064750058523');\n  fbq('track', 'PageView');\n<\/script><br \/>\n<br \/><\/p>\n","protected":false},"excerpt":{"rendered":"<p>The Canadian government will return tariffs on American goods after the new US government, led by President Donald Trump, imposed a 25% additional tariff on its northern neighbour on 1 February 2025. A day later, Ottawa announced a tariff of the same percentage on C$155bn ($105.5bn) worth of US-imported products. Notably, the retaliatory measure will [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":67056,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[12024],"tags":[13497,11057,28873,5784,35912,35914,4489,16168,35913],"dealstore":[],"offerexpiration":[],"class_list":["post-67055","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-aerospace","tag-aerospace","tag-affecting","tag-business-regulation","tag-canada","tag-defense-security","tag-firearms","tag-return","tag-tariffs","tag-uas"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v26.4 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Canada return US tariffs: affecting aerospace, UAS, and firearms - Som2ny Network<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/fivemor.com\/?p=67055\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Canada return US tariffs: affecting aerospace, UAS, and firearms - Som2ny Network\" \/>\n<meta property=\"og:description\" content=\"The Canadian government will return tariffs on American goods after the new US government, led by President Donald Trump, imposed a 25% additional tariff on its northern neighbour on 1 February 2025. 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