US President Donald Trump late on Monday threatened to block Canadian aircraft maker Bombardier from selling planes in the United States unless it manufactures them domestically, escalating a trade dispute with Ottawa as Canada's retaliatory tariffs on billions of dollars in US products take effect on Tuesday.

"NO MORE SELLING ⁠BOMBARDIER ⁠IN THE UNITED STATES! Their products aren't good enough!" Trump said in a post on Truth Social.

"If they want our Market, they must build here, and stop treating America like a 'piggybank',” he said.

He did not specify how a ban would be enforced.

What did Bombardier say?

Bombardier responded to the US president's claims saying it supports tens of thousands of US jobs through its operations and a supply chain of about 2,800 American companies across 47 states.

It also spends more than $2.5 billion (€2.15 billion) annually with US suppliers and said its aircraft use American-made engines, avionics and other components.

Canada's retaliatory tariffs on US goods come into effect

Trump's threat came just before Canada's retaliatory tariffs of up to 50% on $20 billion worth of US imports took effect on Tuesday.

The tariffs cover steel and aluminum products, as well as dairy goods such as cheese.

Ottawa's move came weeks after Trump imposed 50% tariffs on a similar value of Canadian products after Prime Minister Mark Carney refused to match US tariffs on China.

Edited by: Elizabeth Schumacher

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