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The U.S. Department of Commerce gives the reason to Boeing, in the dispute that it pounds with the Canadian manufacturer Bombardier for the subsidies that the new CSeries aircraft receives. Washington now decides to impose a special tariff of 220% ...

America Stoke commercial battle with Canada imposing 220% tariff on Bombardier

The U.S. Department of Commerce gives the reason to Boeing, in the dispute that it pounds with the Canadian manufacturer Bombardier for the subsidies that the new CSeries aircraft receives. Washington now decides to impose a special tariff of 220% ...

America Stoke commercial battle with Canada imposing 220% tariff on Bombardier
The U.S. Department of Commerce gives the reason to Boeing, in the dispute that it pounds with the Canadian manufacturer Bombardier for the subsidies that the new CSeries aircraft receives. Washington now decides to impose a special tariff of 220% to compensate for that advantage. It also does so when the third round of negotiations for the revision of the trade agreement is held in Ottawa. The tariff measure is of a preliminary nature. Boeing's complaint was in April. Bombardier tries to compete in the segment of the short-haul flights with a model with capacity for between 110 and 130 passengers. The Chicago multinational considers, however, that the AIDS that support the CSeries program allow its rival to sell the aircraft at a price far below the market. The single aisle Bimotor seeks to stick snack with a market covering the smallest models of the B737 family. The CSeries has among its first customers more powerful to the Delta airline, which precisely in April closed order of 75 airplanes. Bombardier's tactics, according to Boeing's allegation, are very similar to that used by its European rival Airbus to take orders. "America values the relationship with Canada," says Trade secretary Wilbur Ross, "but even our closest allies must play by following the rules." "Subsidies given by foreign governments to their products is something that Donald Trump's administration takes very seriously," he reiterates. The first deliveries of the CSeries for the Delta fleet are planned for the next year. The Prime Minister of Canada, Justin Trudeau, warned last week that if Boeing went ahead with its grievances, it would be forced to cancel the contract for the purchase of 18 fighter F-18 F/A Super Hornet, valued at $5.2 billion. The British Theresa May also studies measures because Bombardier manufactures the wings of the CSeries in a factory in Northern Ireland. Delta's order, of this, has a very close value to those of the Super Hornet. The CSeries costs about $80 million a unit, but airlines are getting discounts of 50%. In order for the tariff proposed for Bombardier to enter into force, there must be a favourable opinion also of the International Trade Commission of the United States of America. Your opinion could take a few months to arrive.

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