United States confirms 300% duties on disputed Bombardier jets, a win for Boeing

A Bombardier CS300 C Series aircraft manufactured by Bombardier Inc

US confirms 300% duties on disputed Bombardier jets, a win for Boeing

If the ITC sides with Boeing, as it has so far, it could effectively keep USA airlines from using Bombardier's CSeries jet by imposing duties of almost 300 percent, one of the largest ever imposed for a market-based economy, Boeing said.

Bombardier called the USA decision "deeply disappointing" and said they expect the ITC to "reach the right conclusion, which is that the C Series benefits the US aerospace industry, USA airlines and the USA flying public".

The case stems from an April 2016 sale of 75 CSeries jets to Delta Air Lines Inc.

The decision is not necessarily final; it could be overturned if the U.S. International Trade Commission finds that Boeing did not suffer material injury as a result of the Delta sale; the ITC's final decision is expected on february 1. But the panel also appeared dubious about Bombardier's claims that the CSeries and the smallest versions of the 737 do not compete against each other at all.

"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.

Bombardier calls Boeing's criticism an "unfounded assault on airlines, the flying public, and the USA aerospace industry", saying the entire complaint has been overtaken by events. 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 US manufacturing facility in Alabama.

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

"Boeing's assertion that future imports from Canada threaten to cause material injury is necessarily based on just the type of "speculation and conjecture" that is prohibited under both US and global law", MacNaughton told the panel. The plan would create a new wrinkle because the planes would effectively be a US product.

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. He says nothing justifies such duties.

Bombardier said it turned over the Delta sales contract but can not accurately estimate the cost and price of those planes because they are being built and delivered in coming years.

The U.S. planemaker said Bombardier failed to cooperate in a U.S. investigation providing pricing information to the United States.

No planes have yet entered the United States.

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