United States confirms 300% duties on disputed Bombardier jets, a win for Boeing

United States confirms 300% duties on disputed Bombardier jets, a win for Boeing

United States confirms 300% duties on disputed Bombardier jets, a win for Boeing

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 C Series would not even exist at this point but for those subsidies", Boeing said in a statement emailed during Bombardier's panel remarks. "That's years of lost production and deliveries for Boeing, years of lost work for our employees, and years of lost work for our US suppliers", Boeing Executive Vice President Kevin McAllister said.

There is more information on the USA department of commerce decision here.

"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". Bombardier and Boeing argued their cases Monday before the ITC, an independent, quasi-judicial US agency.

The partnership with Airbus means there is "no chance Boeing will be harmed by imports", said Mike Nadolski, vice president of public affairs at Bombardier.

The Canadian government has already backed out of a deal to buy 18 Super Hornet fighter jets from Boeing and bigger boycotts are likely to follow.

Delta is expected to wait for that new plant to open before taking delivery of their order. He says nothing justifies such duties.

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But Bombardier argues that Boeing's case is against full imports of airplanes, not parts, so it does not apply to imports of wings, fuselages and other pieces.

It includes a 79.82% tariff to offset a Commerce Department ruling that Bombardier engaged in price dumping, meaning it sold the CS100s to Delta below its fair market value by that amount.

Canada's government will review the final determinations to consider next steps and options for appeal, she said. The U.S. decision means that the relations between the country and its neighbor, Canada are likely to be terribly strained.

Those subsidies are not prohibited because they are either market-based investments or repayable loans, Bombardier said. Boeing suffered another setback last week when Delta announced it was ordering 100 Airbus planes to renew its narrow-body fleet in a move that analysts viewed as a snub of Boeing over the case.

The CSeries poses no threat to the US aerospace industry because building it at the Airbus factory in Alabama would create U.S.jobs and generate billions of dollars in business for USA aerospace companies, Bombardier said.

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