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By Allison Lampert
MONTREAL (Reuters) -Bombardier CEO Eric Martel said on Monday he was concerned Washington could target the private planemaker's U.S. contracts if Canada cancels a C$19 billion ($13.30 billion) deal 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 hosted by the Canadian Club.
In October, Montreal-based Bombardier 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.
U.S. President Donald Trump doubled down on Monday, saying he would not give exemptions to broader steel and aluminum duties, and pledged to introduce fresh reciprocal and sectoral tariffs on April 2.
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.
Martel's comments highlight the complexity of a trade war for the integrated aerospace sector, which risks getting caught up in an earlier threat by Trump to impose 25% tariffs on all imports from Canada and Mexico.
It is unclear whether a U.S. exemption for Canadian and Mexican goods like Bombardier's planes that comply with the United States-Mexico-Canada Agreement (USMCA) will be extended past April 2.
Martel said if the U.S. did impose tariffs that affect the company's jet deliveries, one option would be to hand over planes first to its non-U.S. clients, echoing a strategy by European planemaker Airbus .
Bombardier, with a division in Wichita, Kansas, and a vast U.S. supply chain, also expects that any possible tariffs would not apply to the U.S. content on its business jets, reducing any potential hit, Martel said.
He added he does not see U.S. tariffs on its planes as likely or lasting a long time if applied.
Martel said existing U.S. tariffs on aluminum and steel, along with retaliatory counter duties introduced last week by Canada on those metals and adhesives, have had minimal impact on Bombardier's costs.
($1 = 1.4291 Canadian dollars)
(Reporting by Allison Martell, David Ljunggren; Editing by Rod Nickel and Richard Chang)
