Bombardier CEO Eric Martel said on Monday he was concerned Washington could target the company’s U.S. contracts if Canada cancels a C$19-billion contract for 88 Lockheed Martin (LMT.N), opens new tab F-35 fighter jets.
Canada, locked in a trade war with the United States, is reviewing the contract for the jets.
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“Effectively, we could be targeted, this is my concern,” Martel told reporters in Montreal after a speech.
Last October, Bombardier’s defense arm 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.
Martel said if the U.S. did impose tariffs that affect the company’s deliveries, one option for Bombardier would be to focus on deliveries first to non-U.S. clients, given it has a long order backlog.
