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U.S. slaps tariffs on Bombardier jets, ruling in favor of Boeing

27 Septembre 2017

"There hasn't been because this aircraft does not compete with Boeing so we're confident that we will be able to demonstrate that and have this case dismissed".

Delta announced the deal with Bombardier in April 2016 to buy 75 CS100 jets to be configured with about 110 seats each.

Bombardier employs around 5,000 people at a plant in East Belfast and signed a 5.6 billion U.S. dollar deal past year to provide up to 125 of its new C-Series aircraft to Atlanta-based Delta Airlines. Boeing alleges government support helped its Canadian rival establish the all-new airliner at the expense of Boeing's own 737 jets.

If the ruling is in favor of Boeing, the department could impose financial penalties on Bombardier, making imports of the Canadian aircraft more expensive, a report in New York Times stated.

The manufacturer described the DoC's interim determination as "absurd" and "divorced from the reality about the financing of multi-billion-dollar aircraft programmes".

The announcement and accompanying fact sheet on the preliminary duty order did not provide any rationale or methodology for how it calculated the 220% duty.

The jet's list price is almost $80 million, but steep discounts are common.

"This is clearly aimed at eliminating Bombardier's C Series aircraft from the U.S. market", she said in the wake of the move. Bombardier has disputed the $19m sales figure.

A final ruling is expected to be made in February.

The controversial United States decision came as Foreign Secretary Boris Johnson was using the launch of a new think-tank on Wednesday to push the cause for global free trade. "People should not read too much into this piece today".

The US has also faced opposition from a handful of American carriers and elected officials over potential US job losses.

"Clearly, this is a worrying time for staff employed in Bombardier and their supply chain: we need the US, Canadian and United Kingdom governments to settle this reasonably and quickly", the East Belfast MLA said.

He said the atmosphere in Bombardier was quiet and muted.

She said: "The Department of Commerce ruling is a blow to the many families and workers who face a very uncertain future and hard times ahead".

Noel Gibson, who has worked at the Bombardier factory in East Belfast for 27 years said: "It is workers who lose out in any dispute and that's what politicians need to realise, that we suffer when commercial disputes break down".

"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.

Punitive tariffs on this scale could jeopardise lucrative orders for its regional C Series jets along with thousands of jobs in the United Kingdom and Canada.

Boeing's dispute with a rival aerospace firm that threatens thousands of jobs in Northern Ireland is "unjustified" and "damaging", the British Government has said. "Boeing's fixation with Bombardier could potentially put hundreds of hardworking people out of work, along with many more in associated roles".

The firm also received $1bn from the Quebec government in 2015.

Boeing alleged that a heavily-subsidised Bombardier sold the aircraft to Bombardier at a price of about $20 million.

"This (ITC case) can not be a slam dunk", said Pearson, a former ITC chairman.

Canada has pushed to settle the dispute.

Marcil said Boeing's only goal for pursuing Bombardier is "to stifle competition in their favour".

U.S. slaps tariffs on Bombardier jets, ruling in favor of Boeing