The trade rift between the U.S. and Canada keeps escalating instead of abating. Once partners in North American security, the political and industrial friction has spilled into the defence sector. On September 8, 2026, President Donald Trump threatened to stop the sale of Canadian jets in the U.S.
Aerospace giant Bombardier (TSX: BBD.B) was the target of Trump’s conditional ban. He said the Canadian company must move its manufacturing operations to America. The impact on investors was immediate, causing Bombardier’s stock to drop 2.5% that day.
However, sometimes you don’t mean what you say. Trump withdrew the threat on October 19, 2026 and said in a speech in Kansas, “We’re going to take care of Bombardier.” He learned that the jet manufacturer employs 1,500 U.S. workers in Wichita, south-central Kansas and 3,500 total in the country.
The turnaround was positive news, raising the stock price nearly 6% since the threat. Trading at $325.85 per share, BBD.B is up 39.6% year-to-date and crushing the broader market. The TSX is up 13.3% thus far in 2026.
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A growth strategy: Expansion plan in the U.S.
The large U.S. workforce forced Trump to reverse course and ditch the proposed sales ban. If it had continued, about 2,800 American suppliers across 47 states would have been affected, including thousands of domestic jobs. Bombardier president and CEO Eric Martel sees a bright path forward along with a positive environment.
In a press release dated October 23, 2026, the $32.5 billion business-aircraft manufacturer announced it will continue to expand its presence significantly across America. Bombardier is also hiring, targeting 800 new jobs. The Canadian company allocated an initial investment of US$270 million for infrastructure growth.
“Our American service network is a key pillar of Bombardier’s growth strategy. This new wave of expansion and hiring reflects our long-term confidence in this market and our employees in America,” said Martel. Texas will be the next pillar of expansion.
Proven track record: Three-peat TSX30 winner
Bombardier has focused exclusively on business jets since restructuring and enhancing its business model in 2016. Bombardier Defence, a dedicated division, is headquartered in Wichita, Kansas.
Performance-wise, Bombardier is a proven winner. The industrial stock made it to the TSX30 list, the annual ranking of Canada’s 30 top-performing growth stocks, for three consecutive years. BBD.B ranked 13th in 2023 and 2024, then rose to 9th in 2025. As of this writing, the three-year total return is plus-690.9%, or a 99.2% compound annual growth rate (CAGR). If you had invested $10,000 three years ago, it would be $76,257.90 today.
The Trump ban would have disrupted Bombardier’s growth trajectory. In Q2 2026, adjusted net income rose 119.7% to $257 million versus Q2 2025. Notably, free cash flow (FCF) reached $238 million. Backlog after the first half of 2026 was $21.8 billion, a nearly 25% increase from year-end 2025. The company credited resilient market conditions and sustained demand across its portfolio for the significant improvement in FCF.
Blessing in disguise
You can’t ignore an outperforming stock and a strong buy candidate like Bombardier because of political rhetoric. Trump was hasty in calling for a ban on Canadian aircraft sales. It was a blessing in disguise for the stock because the walk-back removed trade risk and paved the way for continued growth.
