"This is clearly aimed at eliminating Bombardier’s C Series aircraft from the U.S. market.”
U.S. slaps stiff tariff on Bombardier's new jet - CNN
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by Jon Ostrower @jonostrower September 27, 2017: 4:37 AM ET
- The jet's list price is nearly $80 million, but steep discounts are common.
The initial ruling by the International Trade Commission, an arm of the Commerce Department, recommends a 219.63% tariff on the delivery of each airliner.
Boeing (BA), America's largest exporter and sole producer of commercial airliners, is suing Bombardier. At issue is whether the plane maker received financial backing from the Canadian government that allowed it to stay afloat and sell to Delta for what Boeing alleges were "absurdly low prices."
"The U.S. values its relationships with Canada, but even our closest allies must play by the rules," said Commerce Secretary Wilbur Ross in a statement. "The subsidization 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 announced Tuesday is the first of two in the case. The second is expected on as early as Oct. 5 and may add even more to Bombardier's tariff penalty.
Bombardier also maintains that the smallest single-aisle 737 does not compete with the CS100, the roughly 110-seat Bombardier model purchased by Delta. During the 2016 competition, Boeing offered Delta, the second largest U.S. airline, used jets from another manufacturer.
Delta (DAL), which will use the jet on short and medium range flights around the U.S., cautioned that the ITC's decision was preliminary.
"We are confident the USITC will conclude that no U.S. manufacturer is at risk because neither Boeing nor any other U.S. manufacturer makes any 100-110 seat aircraft that competes with the CS100."