The U.S. Commerce Department recommended a 219 percent tariff on Bombardier C Series jetliners imported to the United States after Boeing said financial support from the Canadian government allowed the company to sell the jets for lower prices. Photo courtesy Bombardier
Sept. 26 (UPI) -- The U.S. Department of Commerce on Tuesday recommended a 219.63 percent tariff on the delivery of Bombardier's C Series jetliner in a dispute between the Canadian company and Boeing.
Boeing sued Bombardier, saying it had financial support from the Canadian government allowing it to sell 100- to 150-seat planes to Delta for low prices.
"The U.S. values its relationships with Canada, but even our closest allies must play by the rules," Secretary of Commerce Wilbur Ross said in a statement. "The subsidization of goods by foreign governments is something that the Trump Administration takes very seriously, and we will continue to evaluate and verify the accuracy of this preliminary determination."
The Commerce Department said that based on an April 2016 release announcing the sale of aircraft to Delta, the tariff could be more than $5 billion.
Bombardier called the tariff "absurd and divorced from the reality about the financing of multibillion-dollar aircraft programs."
"The simple truth is that Bombardier created a superior aircraft that is more efficient, more comfortable, and quieter," a statement said. "The C Series serves a market segment not supported by any U.S. manufacturer. Delta wants to bring this remarkable new aircraft to the U.S. flying public. Boeing wants to prevent U.S. passengers from realizing these benefits, irrespective of the harm that it would cause to the U.S. aerospace industry and the cost to airlines and consumers."
The International Trade Commission, an arm of the Commerce Department, made the decision Tuesday. Later in the year, or early next year, the ITC is expected to determine whether Boeing incurred any injury from the sale of the C Series to Delta.