U.S. Hits Canada’s Bombardier with High Duties, Canada Threatens to Cancel Large Boeing Purchase in Retaliation

While the most recent round of NAFTA renegotiation talks were being conducted in Ottawa, the U.S. Commerce Department assessed a preliminary 220% countervailing duty on Canada’s Bombardier C Series aircraft. In concurrence with a complaint by U.S.-based aircraft manufacturer Boeing, the U.S. ruled that the Canadian government had provided unfair subsidies to sell the Bombardier jets at artificially low prices. Delta, who is scheduled to begin receiving a large order of the jets in 2018, says they are “confident the U.S. International Trade Commission (USITC) will conclude no U.S. manufacturer is at risk because neither Boeing or any other U.S. manufacturer makes any 100-110 seat aircraft that competes with the CS100.”  

Canadian Prime Minister, Justin Trudeau, has threatened to cease Canada’s planned purchase of $5 Billion worth of Boeing fighter jets in retaliation. Many Bombardier parts are also made in Northern Ireland where thousands of jobs could be at stake. U.K. Prime Minister, Theresa May, has told President Trump she is bitterly disappointed in the ruling. However, a final ruling will not be made until next year by the USITC. U.S. Trade Representative, Robert Lighthizer, says he does not believe the situation will have an impact on ongoing NAFTA renegotiations. 

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