Bombardier – v – President Donald J Trump

On the 7 September 2026, President Donald Trump stated in a post on Truth Social:

 “NO MORE SELLING BOMBARDIER IN THE UNITED STATES!”

The statement followed President Trump’s threat to prevent Bombardier Inc., a Canadian aircraft manufacturer, from selling its aircraft in the United States and if the company wanted to access the United States market, “they must build here”. These remarks coincided with the more general decline in trade relations between the United States and Canada, following the recent collapse of trade negotiations between the two nations on the 21st of August 2026, where Canada imposed retaliatory tariffs on about $20 billion worth of US goods.[1]

According to Reuters, the US market is especially crucial for Bombardier Inc., as it accounts for approximately half of its manufacturer’s sales[2] and subsequent to President Trump’s remarks, Bombardier’s share price dropped by 6.4 per cent[3]. Bombardier has responded by stressing on the extent to which its existing supply chain and activities are already embedded in the United States. This Canadian company has stated that it employs around 3,500 people directly in the United States and works with approximately 2,800 United States suppliers across 47 states and therefore spending more than US$2.5 billion per year with American suppliers.[4] Additionally, Bombardier Inc. has expressed that its American presence extends further than just sales and servicing: flight-control components are manufactured in California, whilst business jets’ wings in Texas[5]. Bombardier Inc.’s response therefore highlights an important aspect of modern cross-border manufacturing; determining the location where a product is fabricated is not always straightforward. This applies even more for aircraft as the amount of work that has to be done is immense: final assembly may be done in one country while engineering, labour and other services may be originally conducted in another country.

On top of this, on the 9 September 2026, Bombardier Inc. had also indicated that it is continuing to expand its United States workforce and shall recruit around 500 positions, scheduled to open in November.[6] The political implications of this footprint quickly became apparent. Republican senators from Kansas, where Bombardier has a substantial presence, raised concerns about protecting US jobs following Trump’s announcement.[7]

So the question, my aviation clients and friends, which arises is whether President Trump can simply prohibit Bombardier Inc.’s sales?

A presidential statement does not, by itself, naturally create an enforceable prohibition on the sale or importation of Bombardier Inc. aircraft. As at now, 18 September, Bombardier Inc. aircraft can still be delivered to American customers, according to Reuters. A White House official has, however, said that the administration is preparing options and actions concerning the company.[8] Any formal restriction would therefore require an identifiable legal mechanism.

US presidents possess significant authority over international trade, but that authority generally derives from powers delegated by Congress. The precise statutory basis selected by the administration would consequently be central to determining the scope and the legality of any type of restriction regarding Bombardier Inc. business in the United States. Several existing trade statutes potentially provide mechanisms for restricting imports, although each comes with substantive and procedural requirements. For instance, Section 301 of the Trade Act of 1974 (US Law)[9] empowers Office of the United States Trade Representative to investigate and retaliate against unfair foreign trade practices. However, whether this mechanism could adequately support measures aimed at Bombardier Inc. would depend upon the administration’s stated justification, the findings made and the procedures followed.

Accordingly, should the administration officially prevent Bombardier Inc. imports, attention will surely turn to what action is taken, as well as the legislative authority and whether its statutory conditions have been satisfied. If ever, there is a loophole in the decision, it might cause more harm than good to the United States as this dispute will discourage other high net worth international companies and organisations to invest in America. For instance, Bombardier Inc. is Canadian, but its aircraft are supported by a substantial American industrial ecosystem. Restricting the company’s access to the United States market could therefore affect not only Bombardier and Canadian manufacturing, but also American suppliers, employees, maintenance facilities and customers, which may, in turn be consequential for American purchasers. Analysts have warned that the business-jet market remains tight and that restricting Bombardier aircraft could disrupt American customers already facing lengthy waiting periods for new aircraft[10].

In my view as a result, the Bombardier debate may become more about the future of global manufacturing than it is about a single Canadian aircraft manufacturer.

On one hand, more and more governments want the strategic capabilities, investment and employment related to industry to stay inside their borders, on the other hand, companies rely on global supply networks and access to outside markets. Bombardier is situated right where the opposing forces converge. Whether the next stage of the United States trade policy will favour global integration or increasingly require businesses to select where they belong could be determined by how this disputed will be handled.

© Lawrence Power 2026

Whitestone Aviation Law


[1] Associated Press (2026), “Trump threatens Canada jetmaker Bombardier, which has an extensive US footprint”, 8 September 2026. Available at https://apnews.com/article/trump-canada-carney-trade-bombardier-aircraft-e65b6eeaaa7ffbd06a67a57fb474b2e9.

[2] Reuters (2026), “Bombardier says it wants to fill 500 open US jobs despite Trump’s threats”, 9 September 2026. Available at https://www.reuters.com/legal/litigation/bombardier-still-recruiting-fill-500-open-us-positions-despite-trump-threats-2026-09-09/.

[3] MarketScreener (2026), “Bombardier shares fall after Trump threatens US market access”, 08 September 2026. Available at https://www.marketscreener.com/news/bombardier-shares-fall-after-trump-threatens-us-market-access-ce785bd8df8af320.

[4] Sophia Compton, Fox Business (2026), “Trump targets Bombardier, says Canadian jetmaker ‘must build’ in the US, 7 September 2026. Available at https://www.foxbusiness.com/politics/trump-targets-bombardier-says-canadian-jetmaker-must-build-us.

[5] Andy Hirschfeld, Al Jazeera (2026), “Bombardier defends US manufacturing amid Trump’s aviation sales threat”, 8 September 2026. Available at https://www.aljazeera.com/economy/2026/9/8/bombardier-defends-us-manufacturing-amid-trumps-aviation-sales-threat.

[6] Reuters (2026), “Bombardier says it wants to fill 500 open US jobs despite Trump’s threats”, 9 September 2026. Available at https://www.reuters.com/legal/litigation/bombardier-still-recruiting-fill-500-open-us-positions-despite-trump-threats-2026-09-09/.

[7] Ibid.

[8] Ibid.

[9] Trade Act 1974.

[10] The Canadian Press (2026), “A U.S. ban on Bombardier sales could ‘massively’ disrupt American aerospace” 8 September 2026. Available at https://www.ctvnews.ca/business/article/a-us-ban-on-bombardier-sales-could-massively-disrupt-american-aerospace-analyst/.

First Remotely Piloted Aircraft Tested Under FAA’s eIPP

On 31 August 2026, the US Federal Aviation Administration, (“FAA”), announced the first successful flight of a remotely piloted hybrid-electric aircraft under its eVTOL Integration Pilot Program (“eIPP”).

The demonstration was conducted by Elroy Air along with the Louisiana Department of Transportation and Development, (“LDTD”), to test cargo deliveries at Houma-Terrebonne Airport, (HUM), in Louisiana. LDTD’s was one of the 8 projects selected across 26 states by the U.S. Department of Transportation in March 2026 to participate in eIPP. Others include the Florida Department of Transportation, Pennsylvania Department of Transportation, etc.

The eIPP is a program introduced by the FAA under President Trump’s Unleashing American Drone Dominance Executive Order to safely integrate Advanced Air Mobility, (“AAM”), vehicles – like remotely controlled cargo aircraft – in the US National Airspace System. The information obtained from the demonstrations, which are planned throughout the rest of the year, will be used by the FAA to identify gaps and improve relevant procedures. The projects under eIPP, amongst  other things, focuses on novel means of cargo transportation, automation technology, and air taxis.

For the demonstration, Elroy Air used its Chaparral aircraft, which is a hybrid-electric vTOL, (vertical takeoff and landing), system. Chaparral is designed to carry heavy cargo – more than 500 pounds – between non-traditional sites, such as offshore energy platforms, disaster response, and isolated communities.

Hybrid-electric aviation, which can combine other energy sources with electric propulsion, is becoming more attractive as opposed to conventional aircraft since it facilitates reduced fuel consumption, emissions, etc. (read our article on Sustainable Aviation Fuel (SAF) as an energy source here[1]). Additionally, remotely controlled aircraft open up routes for cargo transportation which are either veritably expensive and inefficient for conventional crewed operations or extremely difficult. Since there are no passengers onboard, such remotely piloted aircraft can be optimised for efficient cargo transportation without incurring design and operational costs associated with conventional manned aircraft.

However, prior to complete integration of remotely controlled aviation in the National Airspace System, regulators and operators must ensure that the systems meet the safety standards applied to conventional aircraft. Automated aviation poses certain unique challenges which must be adequately addressed, such as effective communication between the aircraft and on-ground pilots and handling unexpected situations. For commercial cargo aircraft to safely share airspace with passenger planes, helicopters, and other aircraft, reliable navigation, surveillance and control systems are essential.

© Lawrence Power 2026

Whitestone Aviation Law

Sources:

[1] FAA Announced First Remotely Piloted Hybrid-Electric Cargo Flight (1 September 2026, Aerospace Global News) https://aerospaceglobalnews.com/news/faa-first-hybrid-electric-unmanned-cargo-flights/?utm_medium=email&utm_source=rasa_io&utm_campaign=newsletter

[2] The eIPP: What You Need to Know (Federal Aviation Administration) https://www.faa.gov/newsroom/eIPP-Announcement-Fact-Sheet.pdf

[3] FAA Announces Key Demonstrations with the First Remotely-Piloted Hybrid-Electric Flight for Cargo Shipment (31 August 2026, Federal Aviation Administration) https://www.faa.gov/newsroom/faa-announces-key-demonstrations-first-remotely-piloted-hybrid-electric-flight-cargo

[4] FAA Announces Test Flight with Remotely-Piloted Hybrid-Electric Cargo Aircraft (1 September 2026, Unmanned Airspace) https://www.unmannedairspace.info/uncategorized/faa-announces-test-flight-with-remotely-piloted-hybrid-electric-cargo-flight/

[5] Pilotless Cargo Aircraft Could Change How Packages Move (7 September 2026, Fox News) https://www.foxnews.com/tech/pilotless-cargo-aircraft-could-change-how-packages-move

[6] Elroy Air Completes The First Uncrewed Autonomous Flights Under U.S. DOT and FAA’s eVTOL Integration Pilot Program (eIPP) (2 September 2026, Elroy Air Press Release) <https://elroyair.com/company/news/press-releases/elroy-air-completes-first-autonomous-and-uncrewed-flights-under-eIPP/>


[1] https://whitestonechambers.com/articles/u-s-likely-to-miss-2030-saf-target-wsu-study-finds/

Real or Really Close? The EU’s New AI Labeling Regime and the Risk of Realistic Deepfakes

What does it mean when a politician’s gaffe is exposed as a fabrication? How is a consumer to trust a commending product review when its penmanship originates from the oft imperceptible hand of an algorithm? In a bid to answer these questions, the European Union has enacted a set of transparency rules under its landmark AI Act, compelling companies to label artificially generated or manipulated content designed to look authentic. Starting from this month, the age of the invisible deepfake is, in principle, over.

The initiative comes as a direct response to the flood of deceptive content that has plagued the information ecosystem in recent years: from fabricated audio of Slovakian opposition leaders conspiring to rig elections to videos of Emmanuel Macron in a 1980s nightclub. The new rules, which came into force on the 2 August 2026, mandate that providers of interactive AI systems such as chatbots ensure users are aware that they are not communicating with a human. More significantly, deployers, (the publishers and companies using AI), must clearly label deepfakes and AI-generated text on matters of public interest if it has not undergone substantive human editorial oversight; this includes politics, public health or the environment. This is an attempt to preserve the integrity of democratic discourse through preventing the manipulation of facts.

I can report that the EU legal framework is more intricate than first appears. The laws create a layered set of obligations that apply not only to high-risk AI systems, but more broadly to any system that interacts with people or generates content. For example, Article 50 requires providers of generative AI systems to embed digital watermarks in their outputs to ensure they are technically detectable as AI-generated. Providers of systems already on the market are given a grace period until the 2 December 2026 to comply with this technical and logistical challenge. The onus falls on the deployer under Article 50, whereby they must ensure this mark translates into a clear and perceivable label for the user- a label which cannot be hidden in a website’s terms and conditions.

While the intent to empower consumers is commendable, the rules have sparked controversies within the tech industry. The most prominent concern, as voiced by the Computer and Communications Industry Association, (CCIA), is that the European Commission’s implementing guidelines have expanded the definition of a deepfake far beyond what was originally envisioned. The concern is that the requirement to label is so broad that it will capture almost everything, turning a benign AI-generated landscape in an advert into the equivalent of a malignant, manipulated political speech. Boniface de Champris, the CCIA’s Ai policy lead, warns that this risks creating a situation similar to that of cookie banners, that once labels are everywhere then users will simply stop noticing them. This undermines the very goal of transparency. Additionally, this fear of legal fatigue is accompanied by the complexity of the definitions and what content requires a label. For businesses, it is my opinion that the question becomes a legal minefield. Where is the line between standard AI-assisted editing, such as color correction or background removal, which is exempt from labeling and a substantive manipulation that requires prominent disclosure? This legal uncertainty creates a risk of ‘over-compliance’, as companies fearing the up to €15 million fines, may label content indiscriminately. The rules offer exemption for creative, satirical and fictional  works, a distinction that is crucial yet inherently subjective for businesses to interpret.

So, does, in fact, the EU’s new AI transparency regime signal the rise of a new era of digital accountability, where citizens and consumers alike are armed with the information they need to navigate an increasingly synthetic online world? Will it prove to be well-intentioned, or will it be an ultimately counterproductive measure, drowning the public in a sea of labels and stifling innovation with a one-size-fits-all requirement? Those two things can be simultaneously true at once. The success of this landmark legislation will be determined not simply by its implementation in the coming months, but by whether its labels serve to illuminate the truth or simply become more digital noise.

© Lawrence Power 2026

Whitestone Law

References:

Gates, T. (2026, August 04). Always Read the Label: EU AI Transparency Rules and Questions That Remain Unanswered. Accessible at:

https://www.reedsmith.com/our-insights/blogs/viewpoints/102nfqg/always-read-the-label-eu-ai-transparency-rules-and-questions-that-remain-unanswe

Hamit, D. (2026, August 03). EU rules requiring labels on AI-generated content take effect. Anadolu Ajansi. Accessible at:

https://www.aa.com.tr/en/europe/eu-rules-requiring-labels-on-ai-generated-content-take-effect/4017004

Machin, E. (2026, August 03). You TalkinTo Me? Operationalising The EU AI Acts Transparency Obligations. Ropes Gray. Accessible at:

https://www.ropesgray.com/en/insights/viewpoints/2026/08/102nfqm/you-talkin-to-me-operationalising-the-eu-ai-acts-transparency-obligations

Rankin, J. (2026, July 31). AI labels to be compulsory on authentic-looking content under EU rules. The Guardian. Accessible at:

https://www.theguardian.com/technology/2026/jul/31/ai-labels-to-be-compulsory-on-authentic-looking-content-under-eu-rules

WAM (2026, August 03). EU enforced mandatory labelling of AI-generated content. Gulf News. Accessible at:

https://gulfnews.com/business/retail/eu-enforces-mandatory-labelling-of-ai-generated-content-1.500628946

(2026, 14 May). The EU AI Act’s Transparency Rules: A Practical Guide to Article 50. Accessible at: https://artificialintelligenceact.eu/transparency-rules-article-50/

(2026, 31 July). Code of Practice on Transparency of AI-generated Content. Europa. Accessible at:

https://digital-strategy.ec.europa.eu/en/policies/code-practice-ai-generated-content