US imposes stiff tariffs on Canada’s Bombardier
WASHINGTON: The United States announced on Tuesday it was imposing preliminary anti-dumping duties of 220 per cent on CSeries jets made by Canadian aerospace firm Bombardier following a complaint by American manufacturer Boeing.
The Commerce Department ruled that Bombardier had unfairly benefited from state subsidies in selling its 100 to 150-seat aircraft below cost to Delta Airlines.
Both Canada and the United Kingdom, where some of the parts are built, had sought to persuade the US to drop the case.
“The US values its relationships with Canada, but even our closest allies must play by the rules,” said Commerce Secretary Wilbur Ross in explaining the move.
“The subsidisation of goods by foreign governments is something that the Trump administration takes very seriously, and we will continue to evaluate and verify the accuracy of this preliminary determination.”
The ruling, which is set for a final determination on December 12, could further test relations between Ottawa and Washington, already strained by the ongoing renegotiation of the North Atlantic Free Trade Agreement (Nafta) which also involves Mexico.
Canadian Foreign Minister Chrystia Freeland stressed that the US investigation was only in its preliminary stages and duties can only be imposed once the final probe is completed.
“Canada strongly disagrees with the anti-dumping and countervailing duty investigations into imports of Canadian large civil aircraft. This is clearly aimed at eliminating Bombardier’s C Series aircraft from the US market,” she said. “We will always defend Canadian companies and Canadian workers against unfair and costly protectionism.”
Freeland stressed that components of the jets are supplied by American companies, directly supporting nearly 23,000 jobs across the United States.“Boeing’s petition is threatening these US jobs,” she added.
Canadian Prime Minister Justin Trudeau threatened last week to call off a $5.2 billion purchase of 18 Boeing Super Hornet jet fighters from the US unless the case was dropped.
Bombardier also employees 8,000 people in Northern Ireland, including 4,200 in aeronautics, most in a Belfast factory that builds the C Series wings and fuselage.
“We strongly disagree with the Commerce Department’s preliminary decision,” the company said.
“The magnitude of the proposed duty is absurd and divorced from the reality about the financing of multibillion dollar aircraft programmes” the company added.