Commerce Department sides with Boeing on CSeries tariff

Commerce Department sides with Boeing on CSeries tariff

"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 US market at absurdly low prices".

"This decision is based on a full and unbiased review of the facts in an open and transparent process", Commerce Secretary Wilbur Ross said in prepared remarks.

"Today the U.S. Department of Commerce reaffirmed the magnitude to which Bombardier has been subsidized by government funds and the extent to which it dumped C Series aircraft in the United States, selling those aircraft at prices millions below production cost in an illegal effort to grab market share in the U.S. single-aisle airplane market", the firm said in a statement. Another duty of 212.39% was set to offset Bombardier's benefits from unfair subsidies provided by the governments of Quebec, the United Kingdom and Canada.

"The United States is committed to a free, fair and reciprocal trade and will always stand up for American workers and companies being harmed by unfair imports".

That has been true since the start of the investigation, and recent developments make it even clearer, particularly the Bombardier and Airbus partnership, which will include the construction of a new USA manufacturing facility in Alabama.

The tariff will apply "regardless of whether they enter the United States fully or partially assembled", the Commerce Department says. The complaint found a receptive ear in President Donald Trump, whose "America First" agenda has included taking a tough line in matters of global commerce.

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A final decision rests with the US International Trade Commission, which is expected to decide in February whether Boeing was harmed by the C Series.

In October, shortly after the preliminary tariffs were announced, Boeing archrival Airbus took a majority stake in the C-Series program, announcing that the planes would be built at the Airbus plant in Mobile, Alabama. The trade dispute stems from a complaint by US aerospace giant Boeing against its Canadian rival that found a receptive ear in President Donald Trump, whose "America First" agenda has included taking a tough line in matters of worldwide commerce.

Bombardier doesn't deny that Delta received a good price.

This in turn resulted in major loses for Boeing which is Bombardier's biggest rival.

The Chicago-based aircraft manufacturing giant said the final duty determination validates its complaint. 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.

Boeing said Bombardier hurt its chances of selling its 737 airplane in the US, which Bombardier denies.

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