U.S. imposes stiff tariffs on Canada's Bombardier

The US court's decision is expected this week

OTTAWA-Prime Minister Justin Trudeau has joined the chorus of condemnation over a US government decision to slap a 220 per cent duty on the sale of Bombardier jets, stating Wednesday that he's "disappointed" by the move and vowing to fight for Canadian jobs.

Theresa May has hit out at Boeing over the escalating United States trade dispute with Belfast-linked rival Bombardier, warning its behaviour was "no way to operate".

An interim tariff of 220% has been imposed on the import of Bombardier's C-Series jets to the U.S. after its competitor Boeing lodged a complaint that alleged the Canadian firm was receiving unfair state subsidies from the United Kingdom and Canada in order to win a major contract.

The US Department of Commerce proposed the 220% import tax on the jets, which could hit Bombardier jobs in Belfast.

The U.S. agency's decision was widely ridiculed by aerospace-industry experts, who said cutting prices to boost sales was a common practice.

But today's ruling does give Boeing momentum as the dispute drags on, and more leverage in any future talks between the Trudeau government and Boeing to reach a negotiated settlement.

With rail operations undersized and Boeing prompting the US jet penalties, Bombardier chief executive officer Alain Bellemare has fresh hurdles as he tries to turn around the company and end reliance on financial support from Quebec and Prime Minister Justin Trudeau's federal government.

"We believe the key area of concern will be what Delta does with its order", Walter Spracklin, an analyst at RBC Capital Markets, said in a note to clients.

Canadian Prime Minister Justin Trudeau threatened last week to call off a $5.2 billion purchase of 18 Boeing Super Hornet jet fighters from the USA unless the case was dropped. "Now that day could be a very long day, so that's where the risks come from".

Hurricane Maria is still churning towards the East Coast
HURRICANE MARIA UPDATE: Hurricane Maria is east of the Bahamas and a major hurricane as a Category 3. Maria was located about 530 miles south-southeast of Cape Hatteras, North Carolina.

Delta past year agreed to buy 75 of Bombardier's new CS100 aircraft, with an option for as many as 50 more.

The case will now be considered by the US International Trade Commission for a final ruling in February.

It's not yet clear what avenue Canada will choose to focus on in its appeal, but if the initial ruling is upheld, the duties that make the jets more than three times as expensive would be due as soon as Bombardier starts delivering the jets to Delta, which isn't expected to happen until next spring.

This article is being republished as part of our daily reproduction of WSJ.com articles that also appeared in the US print edition of The Wall Street Journal (September 27, 2017).

The Atlanta-based airline agreed to buy at least 75 of the CS100 planes, the smaller CSeries variant. The deal was a major coup for Bombardier, which had struggled to sell its CSeries planes.

Boeing said that "subsidies enabled Bombardier to dump its product into the USA market, harming aerospace workers in the United States and throughout Boeing's global supply chain".

The list price for the planes is around $6 billion. But the actual amount of money involved in the deal has not been made public, and Boeing has alleged that it is much less.

Bombardier plunged the most in nearly two years after the US levied import duties on its priciest jet and the company missed out on a rail merger in Europe.

Would you like to support a project based right here in Quebec? The factory employs around 4,500 people. One of the authors moved to the region some years ago while the other was born and raised in Quebec.

Related News:

Most liked

Coroner's report deepens mystery of Otto Warmbier's death
Warmbier went to North Korea on a youth trip and was arrested January 2, 2016, in Pyongyang for stealing a poster from a hotel. However, the coroner's office found a scar that "we really couldn't explain through medical instrumentation", Sammarco said.

Porsche 911 GT2 RS sets record 6:47.3 Nurburgring lap time
That's good for a 0-60 time of just 2.7 seconds and a top speed (on track only, of course) of 211 miles per hour. More wonderful still is that Porsche didn't just shave a few milliseconds off the previous record.

Siemens-Alstom rail merger deal includes four-year plant guarantees
Alstom shares jumped as much as 8.5 percent and Siemens rose 2 percent as analysts focused on the cost savings. It is expected to generate revenues of 18 billion U.S. $and adjusted operating earnings of USA $1.4 billion.

Madrid and Barcelona clash over control of the Catalonia police force
Rajoy's government claims the referendum would violate the country's constitution. Rajoy's government says the referendum is illegal under the Spanish constitution.

Paul Pogba ordered to take 10-day holiday by Jose Mourinho
After the two-week lay-off, United face four away games in a row against Liverpool, Benfica, Huddersfield and Swansea. Mourinho told a news conference on Friday: "Again, it is a great opportunity for other players to play.

It's Tillerson vs. Haley Over Iranian Nuclear Deal
Vice President Mike Pence during a high level Security Council meeting on United Nations peacekeeping operations. Haley turned down the top diplomatic job previously, weeks after Trump's surprise election victory past year .

AA:US urges 'unified Iraq' as country's Kurds vote
Tehran has also increased pressure, announcing on Sunday it had blocked all flights to and from the region at Baghdad's request. He again urged Iraqi Kurdish authorities to take a step back and appeared to threaten a possible cross-border operation.

JioPhone Delivery Begins, 6 Million Handsets to be Distributed in 15 Days
The next batch of Jio Phone pre-orders have not started yet and there is no information from the company on the expected date. Customers who had booked the JioPhone in August could soon get their hands on the ultra-affordable 4G VoLTE-enabled phone.

United States has significant issues with Iran N-deal: Tillerson
The JCPOA, Rouhani said, is an worldwide agreement conducive to regional and global security and stability. Tillerson was asked later whether he could have a similar discussion with a North Korean representative.

Iran unveils its new long-range ballistic missile
Criticism by the Trump administration of the 2015 nuclear deal has focused heavily on Tehran's continuing missile program. Iran denies its missile development breaches the resolution, saying the missiles are not created to carry nuclear weapons.

Database: 2016 Federal Bureau of Investigation crime statistics by USA city
The FBI has released new numbers that show violent crime in Detroit has spiked more than 15 percent in 2016. A few thousand law enforcement jurisdictions do not report their data to federal authorities each year.

Brutal Moeen century sets up thumping England win to seal ODI series
But then Moeen, dropped by Gayle at point on 87, switched gear dramatically as England piled up 123 runs in the last 10 overs. He eventually holed out off spinner Ashley Nurse and walked off to a standing ovation from a near-capacity crowd.

Quake detected in North Korea - China
US analysts now estimate that North Korea may have as many as 60 nuclear weapons, according to a Washington Post report. The North Korean dictator said Trump would "pay a heavy price" for his statements.

Victims of the Antioch church shooting
The shooting occurred at the Burnette Chapel Church of Christ in Antioch, a neighborhood in Davidson County governed by Nashville. Minister Joey Spann leads the congregation at the Burnette Chapel Church, according to its website .

Arsenal Can Be Proud of Kieran Gibbs Says Arsene Wenger
However, he says striker Danny Welbeck is still expected to be out of action until after the next worldwide break. YOU can watch the game on Sky Sports Premier League channel, with coverage starting at 7pm.