Bombardier hit with further 80% anti-dumping duty
Bombardier’s CSeries planes have been hit with a further 79.82% anti-dumping duty, taking the total combined tariffs to almost 300% when combined with the 220% countervailing duties that the US Department of Commerce imposed on the Canadian manufacturer last week.
The US Department of Commerce again sided with Boeing in its preliminary determination, ruling that Bombardier dumped its CSeries aircraft into the US, taking advantage of improper governmental subsidies, violating US and global trade laws.
“This determination confirms that, as Boeing alleged in its petition, Bombardier dumped its aircraft into the U.S. market at absurdly low prices,” said Boeing following the ruling.
The combined duty now stands at 299.45% of the price of the CSeries planes. However, for this to imposed onto the import of these models into the US, the International Trade Commission needs to rule in Boeing’s favour, with a final decision expected in early 2018, around the time of the launch of the planes.
Bombardiers shares continued to fall once more following the announcement, however, have since recovered from the 2-cent drop.
The news comes in the same week as Bombardier debuting its new Global 7000 jet in Las Vegas. The Global 7000, priced at $73mn and already sold out until 2021, is specifically designed for private or corporate use and will not be effected by any of the tariffs mentioned, with these exclusive to Bombardier’s CSeries planes.