Online Broadband Guide
Online Broadband Guide


Bombardier hit with new U.S. duties

Bombardier hit with new U.S. duties

The U.S. Commerce Department added 79.82 per cent to 219.63 per cent in preliminary countervailing tariffs it announced last week, once deliveries to Delta Air Lines begin next year.

In a statement, Boeing said the Department of Commerce had "affirmed the magnitude to which Bombardier has dumped C Series aircraft in the United States, selling those aircraft at prices millions below production cost in an illegal effort to grab market share in the U.S. single-aisle airplane market".

Bombardier has hit out at the decision, calling it an "egregious overreach" on the part of the USA authorities.

Bombardier Inc's aerospace business spent $2.4 billion in the United States past year, tapping more than 800 suppliers in all but three USA states, according to a confidential Bombardier report seen by Reuters on Thursday.

"We will continue to verify the accuracy of this decision, while do everything in our power to stand up for American companies and their workers".

Bombardier pointed out that the CSeries 100- to 150-seat airline carrier, still to be manufactured to fill the Delta order, will be built with half of the parts coming from USA suppliers.

The US government said its intervention was prompted by concern to prevent "injurious dumping" of imports into the country, "establishing an opportunity to compete on a level playing field". The chair of the International Trade Committee this week wrote to the secretary of state for greater clarity on the Bombardier situation, asking whether the decision suggests the U.S. "is taking a more protectionist stance to international trade".

The decision intensifies political pressure on NAFTA negotiators ahead of next week's resumption of talks among Canada, Mexico and the U.S.

Prime Minister Theresa May has lobbied President Donald Trump over the row, with Defence Secretary Sir Michael Fallon warning Boeing its actions could jeopardise future UK Government contracts.

Unions have warned thousands of jobs could be in jeopardy.

In retaliation, Canada and Britain threatened to avoid buying Boeing military equipment , saying the duties on the C Series would reduce U.S. sales.

"There are still a lot of markets where you can't beat a turbo in terms of economics", said Cognard, adding Bombardier's move to increase the number of seats on the Q400 gave the plane a cost edge in the category. It is likely to make its final ruling early next year.

Bombardier shares were last up 0.5 percent to C$2.20.

U.S. aerospace analyst Richard Aboulafia said the high duties will hurt CSeries sales efforts to leasing companies and shut the plane out of the U.S. unless the U.S. International Trade Commission effectively ends the challenge in February.

The firm also took umbrage with Bombardier receiving $1bn (£765m) from the Canadian provincial government in Quebec in 2015, when its fortunes appeared to be flagging.

follow

editors' picks

October 07, 2017
Putin Hosts Saudi King to Talk About Oil, Syria
Putin said on Wednesday it was possible to extend an OPEC deal to cap oil output "at least until the end of 2018". With the increase in prices to above $50, producers have started hedging more heavily, said Johnson.

October 06, 2017
Android Wear section disappears from Google Store, smartwatches "no longer available"
Amidst surprising great events that Google hosted, silently it unveiled the Google Assistant App in the Play Store . Noticeably, the new build number seems to have jumped, breaking the circuit since the previous numbers.

October 05, 2017
Las Vegas shooting: Gunman Stephen Paddock 'notorious for abusing girlfriend in public'
Police responded to the incident and found Paddock dead in his hotel room from what appeared to be a self-inflicted gunshot. Her two sisters, who now live in Australia, were interviewed by Australia's Channel 7 network.

October 05, 2017
Ford CEO Jim Hackett's 6-Point Plan to Turn Around the Automaker
The future model will be ordered in only 26 combinations, Hackett's presentation said. For instance, Ford is working on electric cars. Image: Ford to cut costs and make more EVs.

October 03, 2017
Maria likely to become tropical storm Tuesday night or Wednesday: NHC
Hurricane Lee may come in a little package with hurricane-force winds extending out only 35 miles, but it's got some punch. The storm is slowly moving northward well offshore in the Atlantic, kicking up large ocean swells along much of the U.S.

October 02, 2017
Trump attacks mayor of Puerto Rico's storm-hit capital city
Trump's criticism comes on the heels of criticism of Trump's effort to get supplies, electricity and other relief to the U.S. Many others have also jumped onto Twitter to criticize Trump , particularly after his latest "ingrate" tweet.

September 30, 2017
Tottenham striker Kane has potential to become even better, says Pochettino
Spurs star Harry Kane has scored nine goals in his last five appearances, and he will be eager to continue his form on Saturday. Midfield: Serge Aurier will miss the game due to suspension following his sending off during the win at West Ham last weekend.

September 29, 2017
Ruthless Proteas bash tourists on day one
Elgar, on 99, played the ball towards backward point in what proved to be the last over before tea. Kaushal Silva (12) was the other wicket to fall before lunch, bowled by Hasan Ali.

September 28, 2017
Iranian Ballistic Missile Launch Was Faked
Iran's new medium-range missile is suspected to be based from a North Korean design, which has a maximum range of almost 2,500 miles.

September 27, 2017
Outer Banks to see tropical storm force conditions from Maria
The National Hurricane Center has urged those on the Carolina and Mid-Atlantic coasts to monitor the particularly large storm. Hurricane force winds extend out about 70 miles from the center, and tropical storm force winds extend out 260 miles.