POST Online Media Lite Edition


U.S. to keep duties on Bombardier jets

Staff Writer |
The U.S. Commerce Department finalized steep anti-subsidy duties on Bombardier Inc's CSeries jets, setting up the next round of a fierce international trade dispute between the U.S. and Canada.

Article continues below

The move announced by the department to impose duties of nearly 300 percent stems from a complaint by rival Boeing Co that Bombardier had been unfairly and illegally subsidized by the Canadian government, allowing the planemaker to dump its newest jetliner in the U.S. market below cost.

"Today's decision validates Boeing's complaints regarding Bombardier’s pricing in the United States, pricing that has harmed our workforce and U.S. industry," Boeing said in a statement after the department decision.

The aircraft starts at $79.5 million, according to list prices, or some $5.9 billion for the total order, but carriers typically receive steep discounts.

If imposed, the duties would more than triple the cost of a CSeries aircraft sold in the United States, based on Boeing's assertion that Delta received the planes for $20 million each, well below an estimated cost of $33 million and what Bombardier charges in Canada.

The Commerce Department's penalty against Bombardier will only take effect if the lesser-known U.S. International Trade Commission (ITC) rules in Boeing's favor, as it so far has, in its final decision expected in early 2018. â– 

What to read next

Airbus CEO expects to sell thousands of C Series aircraft
WTO appoints panel to review Bombardier subsidies
Bombardier hit by another 80% levy from U.S.