The Commerce Department on Tuesday slapped a steep preliminary tariff on Canada’s Bombardier jets after Boeing complained the aircraft received unfair subsidies.
{mosads}Commerce Secretary Wilbur Ross announced that the U.S. would impose an 219.63 percent countervailing duty on Bombardier’s new commercial jets from Canada.
“The U.S. values its relationships with Canada, but even our closest allies must play by the rules,” Ross said in a statement.
The Commerce Department’s penalty against Bombardier will only take effect if the U.S. International Trade Commission agrees with Boeing in this case, which was initially launched in April. A final decision is expected in 2018.
There is concern from some airlines, including JetBlue and lawmakers on Capitol Hill that any final decision to penalize Bombardier would hurt U.S. consumers.
Under this decision, the Commerce Department will instruct U.S. Customs and Border Protection to collect cash deposits from importers of 100- to 150-seat large civil aircraft based on these preliminary rates.