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Home>U.S. to impose 220% tariff on new jets from Canada's Bombardier

U.S. to impose 220% tariff on new jets from Canada's Bombardier

U.S. to impose 220% tariff on new jets from Canada's Bombardier

09/27/2017

By Doug Cameron

ITC rules in favor of Boeing in trade dispute

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. (DAL) last year prompted a complaint from Boeing (BA) .

The U.S. agency's decision late Tuesday added to investor uncertainty over the fate of Montreal-based Bombardier (BBD.A.T) 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.

An expanded version of this report appears on WSJ.com (https://www.wsj.com/articles/u-s-trade-agency-backs-boeing-against-bombardier-1506466628?mod=mktw).

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