Commerce sets final duties on Bombardier totaling nearly 300 percent

Commerce sets final duties on Bombardier totaling almost 300 percent

Boeing said Bombardier hurt its chances of selling its 737 airplane in the US, which Bombardier denies.In a twist, European aerospace company Airbus, Boeing's chief rival, swooped in October, agreeing to buy a majority stake in the struggling C Series program.Bombardier plans to build the planes in Mobile, Alabama, where Airbus assembles narrow-body jets. The final AD rate was set at 79.82 percent and the final CVD rate was set at 212.39 percent, down roughly 7 percent from the preliminary CVD. If no injury is found, the ITC could terminate the Commerce Department's tariff.

"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 a statement.

European planemaker Airbus SE, which is buying a controlling stake in the CSeries program and has a competing plane, has said it would add a second CSeries production line to a factory in Alabama, making it a USA product for domestic airlines.

"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".

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

The trade dispute has ensnared Delta Air Lines, which agreed to buy at least 75 of the 100-150 seat jets from Bombardier in 2016.


Boeing Co and Bombardier Inc traded barbs on Monday over the USA planemaker's claim that its Canadian rival benefited from billions of dollars in illegal government subsidies and dumped its newest jetliner in the United States at below cost. 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 global commerce. Investigations "established beyond question that Bombardier has taken billions of dollars in illegal government subsidies to prop up its C Series program", Boeing said after the hearing.

The Commerce Department's decision comes as the Trump Administration takes a hard line on trade practices it views as hurting American workers.

He also said that Boeing's claim was meritless since they don't have an aircraft that can compare to the CSeries. The U.S. decision means that the relations between the country and its neighbor, Canada are likely to be terribly strained.

Bombardier says more than half of the value of CSeries content comes from the United States, including engines by Pratt & Whitney.

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

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