Posted on 09/27/2017 6:56:42 AM PDT by Olog-hai
The Commerce Department slapped duties of nearly 220 percent on Canada’s Bombardier C Series aircraft Tuesday in a victory for Boeing that is likely to raise tensions between the United States and its allies Canada and Britain.
Commerce ruled that Montreal-based Bombardier used unfair government subsidies to sell jets at artificially low prices in the U.S.
“The U.S. values its relationships with Canada, but even our closest allies must play by the rules,” Commerce Secretary Wilbur Ross said.
Canada responded by saying it “strongly disagrees” with the U.S. move. “This is clearly aimed at eliminating Bombardier’s C Series aircraft from the U.S. market,” said Chrystia Freeland, Canada’s minister of foreign affairs.
Bombardier, meanwhile, called the decision “absurd .… U.S. trade laws were never intended to be used in this manner, and Boeing is seeking to use a skewed process to stifle competition.” …
(Excerpt) Read more at hosted.ap.org ...
ping
Wow. 220% Don’t know what it will be, but Canada will strike back with additional tariffs of its own or actions against Boeing jets flying into Canada. This could be the beginning of a trade war.
Not really. Canada provides direct subsidies to Bombardier, and that means Bombardier is not working with its own capital.
Boeing, on the other hand, does invest its own bucks for everything, from R&D to manufacturing, marketing and sales, to after sales support. . . Boeing has to bid with that cost lug riding on their books.
EDS tried to say that the US subsidizes Boeing because Boeing gets lots of US Government sales, but it is the commercial side that makes the big sales and carries the company, though the military side makes sporadic huge sales. . .and sometimes Boeing is funded for select R&D programs, meaning the government has a mission and needs a product, so they work with Boeing (and other major defense companies) to investigate the technology.
Bottom line; Boeing has to bid on all programs and do not receive subsidies from the government. In Canada, the Canadian government does subsidize not-so-much for R&D, but to reduce the cost lug of developing a product.
Not possible because of NAFTA. Besides WE ARE IN TRADE WAR NOW.
See my link at reply #25 for info on the subsidy angle.
Which is still in production....
It’s about time these and other foreign aircraft had a duty slapped on them. There is no such thing as free trade.
NB: Boeing does not have a comparable aircraft.
I read the link. It mentions millions in Canadian government support, which justifies a tariff. But 220% is such a huge tariff, and the link you provided doesn’t give enough information on the size of the subsidies relative to Bombardier’s business, or at least its small jet business, to understand the size of an appropriate tariff.
Next up: Airbus.
Next up: Airbus.
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If it’s not fair trade, I am all for it.
And I’ll admit that I am far from a Boeing fan. I believe they’re corrupt too.
Thanks!
We need tariffs across the board for all products and all countries.
Use the tariff proceeds to cut taxes.
We’ve had a trade war going on for many years. Finally We’re fighting back.
The C Series is focused on 100-145 seats. A review of the active fleet shows that the 100-130 seat segment has gone from 28% in 2000 of the market to 15% in 2016.
Next let’s look at the Boeing 737 fleet. The smallest model is the 737-700 which is to be replaced by the MAX7. The -700 seats 143 in the Southwest Airlines (NYSE: LUV) configuration. Southwest is the world’s largest -700 operator. Boeing is discussing plans with airlines to offer the MAX7 with 150 seats.
Delta pointed out in its reaction Boeing’s filing that they wanted a 100 seat aircraft. Boeing no longer makes such an aircraft
https://seekingalpha.com/article/4078416-boeing-vs-bombardier
Crony capitalism. They’re big on the Ex-Im bank too.
Get ready for much higher lumber prices and house prices now.
Hollow Free Traitor™ propaganda scare tactics.
The new C class, which is what the tariff is about, is larger. 110 - 130 passengers. That competes directly with smaller Boeing 737s.
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