Southwest Airlines, which operates more than half of flights in and out of Sacramento, has 34 of the Max 8 jets in its 750-craft fleet.
Deliveries of Boeing's best-selling 737 Max jets were effectively frozen, though production continued, after the United States joined a global grounding of the narrow-body model over safety concerns, industry sources said.
The United States plane-maker said that it would suspend all 371 of the aircraft.
Of those, 6,548 were due to be operated by a Boeing 737 Max variant.
Boeing erased a share gain on the announcement and fell less than 1 percent to $374.29 at 12:05 p.m.in NY.
Affected planes will be grounded immediately upon reaching their destinations.
Southwest long ago decided that having the same plane, with the same maintenance and tool needs was the best way to run an airline.
The U.S. Federal Aviation Administration has stood by the embattled American airplane manufacturer and has said there is no basis for grounding the aircraft - a stand that has left the agency increasingly isolated. But he said Canada received new satellite data on Wednesday morning that resulted in the safety notice. It also reviewed satellite data it obtained earlier in the day.
Acting FAA administrator Daniel Elwell said he did not know how long the US grounding of the aircraft would last.
WestJet released a statement on Wednesday saying it respected and will comply with Transport Canada's decision.
Boeing CEO Dennis Muilenburg said the company was "supporting this proactive step out of an abundance of caution".More news: Reputed Gambino crime boss shot and killed outside NY home
Trump's order also extended to another variant of the plane known as the Max 9.
For at least two Max 8 pilots, the order should be welcome news: Pilots working for two US airlines logged complaints about the Boeing 737 Max 8 jet prior to Sunday's crash, CNN revealed on Wednesday, submitting their concerns to a federal database.
"Similar causes may have contributed to both events", European regulators said, referring to the Lion Air crash in Indonesia that killed 189 people in October.
Some aviation experts have warned that finding answers in this crash could take months.
"There are some similarities between the two profiles", he said, referring to the fatal flights.
Ethiopian Airlines Flight ET302 crashed shortly after taking off from Addis Ababa on Sunday, killing all 157 people on board. The decision will be made by the team investigating the crash.
"We're going to be issuing an emergency order of prohibition to ground all flights of the 737 Max 8 and the 737 Max 9 and planes associated with that line", Trump told reporters at the White House.
The president said any Boeing now in the air will go to its destination and then be grounded.
DGCA said that these planes would be grounded until appropriate modifications and safety measures are undertaken to ensure their safe operations.
However, it said after consultation with the FAA and the National Transportation Safety Board it had made a decision to ground the flights "out of an abundance of caution and in order to reassure the flying public of the aircraft's safety".
"There are delivery dates that aren't being met, there's usage of the aircraft that's not being met and all the supply chain things that Boeing so carefully crafted", Cox said.