President Donald Trump says Canadian aircraft maker Bombardier Inc. (OTC: BDRBF) is about to put real money into the United States. On Thursday, Trump posted on Truth Social that the company would invest $270 million and create thousands of jobs across Kansas, Texas and Indiana.
That is a striking turn for a company Trump was threatening with tariffs just months ago. But politics makes strange bedfellows, and aircraft manufacturing makes for some very expensive ones.
Trump gave credit to Sen. Roger Marshall (R-KA) and Texas Attorney General Ken Paxton for helping secure the investment. He described the two as strong advocates for American workers, saying companies are investing in the country and creating jobs "like never before."
"We are bringing back our Jobs, our Manufacturing, and the American Dream," wrote the President.
Bombardier has been making the case that it is already a meaningful part of the U.S. economy. The company previously said its U.S. operations support tens of thousands of jobs and pledged continued investment in its workforce, customers and local communities.
Just last week, Bombardier announced about $50 million in investment for Wichita, Kansas, including a new North American Learning Center. The center is meant to develop talent, strengthen capabilities and support the long-term growth of its operations.
Bombardier did not immediately respond to MarketDash's request for comments.
Trump's Canada Trade Fight Hits Bombardier
The warm words are a sharp reversal from last month, when Trump said the Canadian aircraft maker should no longer sell planes in the U.S. That threat followed criticism that Canada was blocking General Dynamics Corp. (NYSE: GD)-owned Gulfstream Aerospace, even though Bombardier pulls in substantial revenue from U.S. buyers, companies, airports and service operations.
In January, Trump threatened to revoke certification for Canadian-made aircraft and impose a 50% tariff on Bombardier jets unless Canada certified U.S.-made Gulfstream jets. Canadian authorities certified the General Dynamics-backed jets a month later.
Republican Sen. Jerry Moran of Kansas then urged the administration to let Bombardier's Wichita operations expand. Moran said the facility supported more than 1,000 employees and contributed to U.S. defense and aerospace capabilities. He pledged to keep Bombardier's manufacturing operations in Kansas and expand them to create more U.S. jobs, even as Trump escalated trade tensions with Canada and targeted the private-jet maker.
Canada's Tariffs Raise Political Stakes for Trump
The investment news lands as Canada's tariffs on roughly $20 billion of U.S. goods take effect, intensifying the broader trade war between the two neighbors.
Economist Justin Wolfers said Canada's retaliatory tariffs have limited short-term economic impact but could inflict political damage on Trump by targeting products concentrated in politically sensitive Midwestern states. Wolfers said Ottawa responded with dollar-for-dollar retaliatory tariffs aimed at machinery, aluminum and dairy products, which are concentrated in states near the Canadian border where political sensitivities run high.
In other words, the tariffs may not move the economic needle much, but they are aimed squarely at the places where elections are decided. And now Bombardier, a Canadian company, is promising jobs in Kansas, Texas and Indiana. Whether that is a peace offering or a clever bit of leverage, the White House is happy to take the win.