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Home>U.S. to Slap Big Tariff on New Jetliner From Canada's Bombardier -- Update

U.S. to Slap Big Tariff on New Jetliner From Canada's Bombardier -- Update

U.S. to Slap Big Tariff on New Jetliner From Canada's Bombardier -- Update

09/27/2017

 By Doug Cameron 

U.S. officials said they plan to slap a large tariff on sales of a new Bombardier Inc. jetliner to U.S. airlines, inflaming a simmering trade spat with Canada.

The International Trade Commission ruled in favor of a complaint from Boeing and said it would add a 220% tariff to the cost of the new CSeries jet. The jet's sale to Delta Air Lines Inc. last year prompted a complaint from Boeing.

The U.S. agency's decision late Tuesday added to investor uncertainty over the fate of Montreal-based Bombardier after two of its main rivals in the global rail market agreed to combine their transport operations, triggering a double-digit gain in its share price during Tuesday trading.

"The Commerce Department will instruct U.S. Customs and Border Protection to collect cash deposits from importers of 100- to 150-seat large civil aircraft based on these preliminary rates," the department said in a statement.

Delta, whose 70-jet order for the CSeries triggered the case, said it was confident the U.S. would take no action against it.

"Boeing has no American-made product to offer because it canceled production of its only aircraft in this size range, the 717, more than 10 years ago," it said in a statement.

The Commerce Department ruled in favor of Boeing's claims on the jet pricing despite vehement denials from Bombardier and Canadian officials.

Boeing said that "subsidies enabled Bombardier to dump its product into the U.S. market, harming aerospace workers in the United States and throughout Boeing's global supply chain."

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