Trudeau Liberals Try to Play Hard Ball, U.S. Imposes 220% Duty on Bombardier Planes
The U.S. Department of Commerce has clobbered aerospace and taxpayer subsidized giant Bombardier with a hefty 220 per cent countervailing duty on the sale of its CS100 commercial jets to a U.S. airline following a trade complaint from an American rival.
The department ruled that Bombardier benefited from improper government subsidies, a finding that deals a blow to the Montreal-based company's chances in its dispute with U.S. rival Boeing.
Bombardier responded with a statement saying, "The magnitude of the proposed duty is absurd and divorced from the reality about the financing of multibillion-dollar aircraft programs."
The company argues that "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."
Meanwhile, Boeing, which had complained that Bombardier inked a deal with Delta Air Lines for up to 125 of the jets by offering the planes at below-market price, wasted no time Tuesday in declaring victory.
"Subsidies enabled Bombardier to dump its product into the U.S. market, harming aerospace workers in the United States and throughout Boeing's global supply chain," the company said in a statement.
The dispute is not about limiting innovation or competition, it continued, but rather "has everything to do with maintaining a level playing field and ensuring that aerospace companies abide by trade agreements."
The financial penalties aren't officially due until Bombardier delivers the first CS100 to Delta sometime in the spring.
The Justin Trudeau Liberals brought this one on themselves after continuously funnelling taxpayer money to Bombardier who can't seem to even finish Canadian projects on time. Then Trudeau took it a step further and publicly slammed Boeing not factoring the fact that America really doesn't need Canada as much as he thinks.