Bombardier CSeries faces 300 per cent in export duties to the U.S.

Bombardier Inc. faces whopping duties of almost 300 per cent to export its CSeries commercial jet into the American market after the U.S. Department of Commerce tacked on another 80 per cent of preliminary antidumping duties Friday.

The decision adds 79.82 per cent to 219.63 per cent in preliminary countervailing tariffs once deliveries to Delta Air Lines begin next year.

“The United States is committed to free, fair and reciprocal trade with Canada, but this is not our idea of a properly functioning trading relationship,” stated Commerce Secretary Wilbur Ross. “We will continue to verify the accuracy of this decision, while do everything in our power to stand up for American companies and their workers.”

The Montreal-based transportation manufacturer didn’t immediately respond to the latest duty announcement but last week said it was confident that the “absurd” and unfounded tariffs will be reversed in final decisions in the coming months.

It says Boeing can’t justify its claim of being harmed since it doesn’t make a plane the size of the CS100.

Boeing revised its request for anti-dumping duties to 143 per cent from around 80 per cent because of Bombardier’s refusal to provide certain information to the Commerce Department.

Countervailing duties target what the U.S. considers unfair subsidies, while anti-dumping tariffs go after the alleged selling of imported products below market value.

The U.S. aerospace giant petitioned to the government in April after its smaller rival secured a deal for up to 125 of its CS100s with Delta in 2016. The firm order for 75 aircraft had a list price of US$5.6 billion, although large orders typically secure large discounts.

The department’s preliminary countervailing duty findings agreed with Boeing that Bombardier benefited from improper government subsidies, giving it an unfair advantage when selling its CSeries 100- to 150-seat jets south of the border.