US slaps tariffs on Bombardier jets, ruling in favor of Boeing

Boeing contends that Bombardier broke USA and global trade laws by selling its planes at "absurdly low prices", which makes for an unfair playing field and poses a risk to its long-term business. He also once again threatened to cut government ties with Boeing.

The Canadian military is considering whether to buy Boeing's F-18 Super Hornets for the Canadian military, and Trudeau suggested in a September 18 news conference that he would abandon the purchase as a result of Boeing's complaint against Bombardier.

However, any decision to reconsider Government contracts with Boeing will have to be weighed up against the roughly 16,500 jobs supported by the aerospace giant in the UK.

Bombardier is a Montreal-based multinational which had been under financial pressure and invested large sums in its new jet programme.

U.K. Prime Minister Theresa May said she was "bitterly disappointed" with the duties, which threaten jobs at a Bombardier plant in Northern Ireland.

In the United Kingdom, the government and trade unions fear the imposition of tariffs could make Bombardier question remaining in Northern Ireland, where it employs 4,100 people in four locations.

"We won't do business with a company that's busy trying to sue us and trying to put our aerospace workers out of business, " he said.

"Obviously, we are very concerned about the jobs here in Belfast and Northern Ireland", the DUP leader told Sky News.

"There are further steps that will follow", she said in a statement.

"Global trade works only if everyone plays by the rules that we've all endorsed to ensure fair competition, as adjudicated by independent national and worldwide bodies", Boeing said.

"To protect jobs and our economy, we need to stay in the single market and customs union to preserve trade with our largest market - the EU".

Pickthall concluded that his members across Canada look forward to the next phase of this process, expecting a better conclusion from the US International Trade Commission, whose ruling is expected in the Spring of 2018. That decision is expected to be made next year, when the Canadian manufacturer is scheduled to deliver the first C Series planes to Delta.

British Business Secretary Greg Clark said he was confident the initial Department of Commerce ruling would be overturned.

United States authorities say this allowed Bombardier to supply aircraft at an implausibly low price of around £19m, making it impossible for Boeing to compete.

"With the lack of a credible product in the 100 to 150 seat space, including a weak (absent?) offering in the low end of the main narrowbody market, Boeing is reverting in our opinion to alternative tactics to protect its flanks".

After Mrs May's disastrous result in the general election she was forced to strike a deal with the Northern Irish party in a "confidence and supply" arrangement.

Why is Bombardier important to NI?

Unite has said Bombardier workers are "holding their breath" awaiting the outcome. It has recently begun constructing its first European parts manufacturing site in Sheffield, northern England.

However, aerospace analyst Howard Wheeldon said: "Threats by both the Canadian and British Prime Ministers to halt purchase of Boeing military planes unless the dispute can be sorted out are hardly conducive to finding a satisfactory way out of the current impasse".

"I think there is a lot of saber-rattling, but in practical terms it is not on", he said when asked whether Britain could cancel or reduce Boeing defense orders.

  • Zachary Reyes