U.S. Slaps Tariff On CSeries Airliner
Responding to a complaint by Boeing, the U.S. Department of Commerce says it will levy a 219.63 percent tariff on every Bombardier CSeries airliner imported into the U.S. The tariff ruling is considered preliminary and is yet to be approved by the U.S. International Trade Commission in early 2018.
Following a sale of 75 CSeries jets to Delta in 2016, Boeing complained that Bombardier enjoyed unfair subsidies when the Quebec government bailed out the company out with $1 billion infusion. The CSeries program had been troubled with delays, cost overruns and a lack of market interest. The Delta deal turned that around and Boeing says it was at its expense. Boeing argued that the subsidy represented unfair competition again its 737NG and 737 MAX models. The CSeries is a 100-seat, ultra-efficient airliner intended for markets once served by regional jets. The 737NG typically seats 137 while the MAX has up to 175 seats.
Said Boeing in a statement this week: "The U.S. Department of Commerce today affirmed that Bombardier has taken massive illegal subsidies in violation of existing trade law. Subsidies enabled Bombardier to dump its product into the U.S. market, harming aerospace workers in the United States and throughout Boeing’s global supply chain." Bombardier responded by calling the ruling "absurd and divorced from reality." The Montreal-based company accused Boeing of manipulating U.S. trade laws to stifle competition.