US proposes further duty on import of Bombardier C-Series jets
The US Department of Commerce has revealed its plan to impose an additional tariff of 79.82% on the import of Bombardier's C-Series aircraft from Canada.
The new affirmative preliminary determination has been issued in connection with the ongoing antidumping duty (AD) investigation of 100 to 150 seat civil aircraft from Canada to the US.
It also follows a complaint lodged by Boeing, which accused Bombardier of purposefully introducing C-Series aircraft into the US market at ‘absurdly low prices’.
The newly proposed duty is in addition to the 220% tariff planned by the US Department of Commerce last month as part of a separate investigation that charged Bombardier with receiving undue state subsidies from the UK and Canada.
US Commerce Secretary Wilbur Ross said: “The US is committed to free, fair and reciprocal trade with Canada, but this is not our idea of a properly functioning trading relationship.
“We will continue to verify the accuracy of this decision, while do everything in our power to stand up for American companies and their workers.”
In addition, the Commerce Department expects to instruct the US Customs and Border Protection to collect cash deposits from importers of 100 to 150 seat civil aircraft based on the newly announced preliminary rate.
Reacting to the latest US Department of Commerce proposal, Bombardier said in a statement: “We strongly disagree with the Commerce Department’s preliminary decision.
“It represents an egregious overreach and misapplication of the US trade laws in an apparent attempt to block the C-Series aircraft from entering the US market, irrespective of the negative impacts to the US aerospace industry, US jobs, US airlines, and the US flying public.”
A final decision regarding the ongoing dispute between Boeing and Bombardier is expected to be made by early next year.
Image: A Bombardier C-Series aircraft. Photo: courtesy of Bombardier.