The U.S. Commerce Department moved to impose trade duties of nearly 300 percent on sales of Bombardier CSeries jets in the United States. Fred Katayama reports.
The U.S. Commerce Department moved to slap a nearly 300 percent duty on sales of Bombardier CSeries jets in the United States. That decision was prompted by a complaint from Boeing, which had sought an 80 percent duty. Boeing said Canadian Bombardier received illegal subsidies and dumped the planes in the U.S. at "absurdly low" prices. The Commerce Department proposed the 80 percent duty after finding out that Bombardier's jets were sold below cost to Delta in 2016, adding to the 220 percent duty announced last week. People's United Wealth Management's CIO John Traynor: SOUNDBITE: JOHN TRAYNOR, CHIEF INVESTMENT OFFICER, PEOPLE'S UNITED WEALTH MANAGEMENT, (ENGLISH) SAYING: "There have been ongoing disputes with Bombardier throughout the year. This is the next step. WHat we think this is really about going forward, is, you know, bigger negotiation with Canada regarding overall trade policy and NAFTA. So, whether this is a bargaining chip for the administration, we really don't know, but very unlikely that these tariffs are going to hold." The new tax will not take effect unless affirmed by the U.S. International Trade Commission early next year. But it is expected to heighten trade tensions between the United States, Canada and Britain, where wings for the Bombardier jetliner are made.