US Backs 300 Percent In Duties On Bombardier After Boeing Complaint

Bombardier fights back after new duty put on CSeries sales to U.S

Boeing's trade case against Bombardier over the CSeries has been categorically rejected as having no merit by the United Kingdom government, which has urged the U.S. airframer to withdraw the complaint immediately.

The decision underscored the defensive trade policy of U.S. President Donald Trump, and could effectively halt sales of Bombardier's innovative new plane to U.S. airlines by quadrupling the cost of the jets imported to the United States.

The U.S. Commerce Department added 79.82 per cent to 219.63 per cent in preliminary countervailing tariffs it announced last week, once deliveries to Delta Air Lines begin next year.

Boeing has said the dispute was about "maintaining a level playing field" and was not an attack on Canada or Britain.

Bombardier said it was confident that the ITC would find Boeing was not harmed, calling the Commerce Department decision a case of "egregious overreach".

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"Our government will continue to vigorously defend the interests of the Canadian aerospace industry and our aerospace workers against irresponsible and protectionist trade measures".

Specifically, Boeing charges that Bombardier a year ago sold Delta Air Lines 75 CS100 aircraft for less than it cost to build them.

"Following the initial determination, there is then a further call for evidence. we look to the U.S.to make sure that this is a rigorous process and is not politically influenced", Clark told lawmakers.

"Bombardier always has the option of coming into full compliance with trade laws", Boeing added. "All I would observe is that it is hard to point to competition when the product does not compete with an existing Boeing product, so Boeing's longer-term motivations will need to be justified to the International Trade Commission".

He said workers will fight even harder to get the duty reversed.

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Boeing petitioned the government in April after its smaller rival secured a deal for up to 125 of its CS100s with Delta in 2016.

The government has been accused of failing to go beyond "fluffy words" in its attempts to help more than 4,000 staff of aircraft maker Bombardier who face losing their jobs in an global trade dispute.

Bombardier has repeatedly stressed that Americans will be hurt by the tariffs because more than half the content on the 100- to 150-seat CSeries is sourced by USA suppliers, including Pratt & Whitney engines.

"This ruling places a serious threat to four thousand workers at the five Bombardier sites in Northern Ireland as well as the approximately 20,000 whose jobs are sustained by the stimulus provided by the workers' wages and the wider procurement associated with the company".

Canada has threatened to cancel the planned purchase of 18 Super Hornets to temporarily augment Canada's aging fleet of CF-18s.

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