Trump told Bombardier it can't sell planes in America unless it builds them in America. This is called protectionism. Retail traders call it bullish for Boeing. They're wrong but we'll get to that.
Canada responded by slapping $20 billion in tariffs on U.S. goods starting Tuesday. That's the actual headline. A sitting president picked a fight with Canada—Canada—and lost before the fight even started.
Bombardier makes regional jets. Small planes. The kind that fly you from Cleveland to Cincinnati so you can connect to a real airport. Trump wants them built in Michigan or Alabama or wherever votes live. Canada wants to keep building them in Quebec where they've been building them for decades.
Here's what happens next. Bombardier either builds a factory in the U.S. and charges 30% more per plane, or they sell to literally every other country on Earth and ignore the American market entirely. Boeing celebrates. Airbus celebrates. Airlines pay more. Ticket prices go up. Your technical analysis says none of this matters because the 50-day moving average crossed the 200-day and that's a golden cross which means buy.
The golden cross also appeared in 1929, 2000, and 2008. But sure, this time it's different.
Canada's tariffs hit Tuesday. Trump's threat came Monday night. This is what diplomacy looks like when both sides hire consultants who learned negotiation from watching Billions. Everyone loses except the consultants.
Bombardier's stock will do whatever it was going to do anyway because trade policy doesn't move stocks. Earnings move stocks. Buybacks move stocks. CEOs lying on CNBC move stocks. A president threatening a Canadian plane maker moves nothing except the newsfeed your broker charges you $30 a month to access.
You'll buy the dip. The dip will dip. You'll blame Canada.
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