Bombardier Hit With More Tariffs

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After punishing Bombardier with a 219 percent tariff on the CSeries airliner last week, the U.S. Commerce Department slapped another 80 percent levy on the jet this week. Responding to a complaint from Boeing, the Commerce department found that Bombardier’s prices on the CSeries in a sale to Delta Air Lines amounted to dumping or selling goods below cost. 

According to the Seattle Times, the Commerce department said Bombardier failed to provide the information it requested in the case and it accepted Boeing’s argument that the CSeries sale represents unfair competition because of government subsidies. The tariff effectively quadruples the price of the CSeries jets for U.S. buyers. The Commerce ruling still has to be reviewed by the U.S. International Trade Commission, but if it’s approved, Delta’s purchase is unlikely to go through.

Bombardier can appeal the decision to the U.S. Court of International Trade or the World Trade Organization but that action is expected to take months. Although Boeing has no competitor for the CS100 Bombardier intended to sell to Delta, it noted that the sales contract allowed the airline to convert some of the 75-airplane order to the larger CS300. That could represent lost sales for Boeing.

If the tariff decision stands, U.S. companies won’t escape the impact. Half of the CSeries components are U.S. sourced, including the Pratt & Whitney geared turbofans that account for the airplane’s exceptional efficiency. The wings are manufactured in Ireland. Following Friday’s decision, Bombardier said the ruling “represents an egregious overreach and misapplication of U.S. trade laws in an apparent attempt to block CSeries aircraft from entering the U.S. market.”

Comments (6)

Boeing needs to grow up and build something newer and better. The 737 is an antique. Time for a new design. The bombardier product in the cseries is worlds beyond more advanced, fuel efficient and it fills the role of nothing that Boeing offers.

Boeing complaining about doing business with countries that subsidize products is hilarious, seeing as they have no problem selling aircraft to the ME3 who are hugely subsidized by their respective governments.

Hopefully the the US ITC knocks a few hundred percent tariff off of this. nearly 300 percent in tariffs is absurd and in no way reasonable for anyone involved.

Posted by: Jonathan Butkovic | October 7, 2017 10:37 AM    Report this comment

Absoute insane decision by the Commerce department, First of all Boeing has no plane in the class of Bombardiers C series, It is a short haul aircraft of 1000 miles, Second Boeing didn,t even bid on the contract so how could it hurt them? As well Boeing receives all kind of perks from the US government So much for free trade!

Posted by: Peter Simpson | October 7, 2017 12:41 PM    Report this comment

Anyone who thinks that Bombardier can BUILD a C-series plane for $19.5 million - let alone make a profit selling them at that price - please raise your hand.
Dumping is dumping, and it's unlawful - regardless of who else is, or isn't, selling competing products at any price.

Posted by: Tom Yarsley | October 7, 2017 5:10 PM    Report this comment

Maybe Canada's long history of bailing out Canadair/Bombardier will finally come to end.

Posted by: Rob "daSlob" Schaffer | October 7, 2017 6:23 PM    Report this comment

Dumping has nothing to do with selling below cost--this happens all the time in many industries in order to gain long term business, something which is entirely reasonable for Bombardier to do to gain a foothold in the US market.

Read the actual definition of dumping, and then see if Boeing has a case (it may, but "selling below cost" has nothing to do with it).

Posted by: Steve Miller | October 8, 2017 12:02 PM    Report this comment

Boeing has a history of either buying out competition and shutting down their products (McDonnell Douglas, deHavilland of Canada) or just shutting out Canadian aviation alltogether (what happened to all of the Army's fixed wing aircraft, most of which were Canadian made, when McNamara was defense secretary). I have a hard time buying the Boeing argument when they do not have a product that matches what Delta is looking for. And what about the Europeans, who don't hestitate to complain about Boeing in reguards to Airbus. They have not complained about the C series at least not yet. This could turn into a real mess considering all the related American companies who supply systems or parts for the C series. I for one welcome the chance to actually ride in a comfortable airliner which most 737s in service now are not.

Posted by: matthew wagner | October 8, 2017 6:17 PM    Report this comment

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