US Upholds Import Tariff on Bombardier

Belfast jobs fears grow as US hits Bombardier with 300pc import duty
US confirms it will go ahead with tariff on sales of Bombardier jets
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22 December, 2017

Bombardier's C Series 100- to 150-seat aircraft will face antidumping and countervailing duties of nearly 300 percent if shipped into the USA, the Commerce Department announced December 20.

An global row between the US and Canada has kicked off again as the US Department of Commerce upheld massive tariffs on the import of Bombardier's C Series jet.

Boeing, which launched the petition over the sale of 75 CSeries aircraft to Delta Air Lines, says the decision validates its complaint.

Labelling Boeing's complaint "meritless" and a "cover to close the US market", Mr Turner called on the US International Trade Commission (ITC) to set aside the Commerce Department's decision when it hears the next stage of the complaint in February.

"The C Series would not even exist at this point but for those subsidies", Boeing said, adding that the support enabled the company "to dump aircraft into the USA market at absurdly low prices". Speaking after the verdict, Bombardier said, "Unfortunately, the Commerce Department decision is divorced from...reality and ignored long-standing business practices in the aerospace industry, including launch pricing and the financing of multibillion dollar aircraft programs".

The US Commerce Department announced on 20 December that Bombardier CS100s ordered by Delta Air Lines could face a 292.21% tariff if they cross into the U.S. in a partially or fully assembled state.

"Today's decision validates Boeing's complaints regarding Bombardier's pricing in the United States, pricing that has harmed our workforce and USA industry", it added.

The U.S. Department of Commerce was due to finalize the proposed duties on Monday or Tuesday.

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"Boeing's assertion that future imports from Canada threaten to cause material injury is necessarily based on just the type of "speculation and conjecture" that is prohibited under both US and global law", MacNaughton told the panel.

Delta CEO Ed Bastian told Business Insider in a recent interview that the C Series plane is already made with at least 50 percent USA parts and moving its assembly to Alabama would boost that percentage up to about 60 percent.

Boeing says that should not negate the duties because Airbus and Bombardier would import fuselages and wings and merely be assembling in the United States.

In October, shortly after the preliminary tariffs were announced, Boeing's European archrival Airbus took a majority stake in the C-Series program, and announced the planes would be built at the Airbus plant in Mobile, Alabama.

US and Mexican trade officials will meet next month in Canada to continue NAFTA talks.

Bombardier said it turned over the Delta sales contract but can not accurately estimate the cost and price of those planes because they are being built and delivered in coming years.

Bombardier says more than half of the value of CSeries content comes from the United States, including engines by Pratt & Whitney.


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