'Bitterly Disappointed': US to Impose 220% Tariffs on Bombardier, Jobs at Risk

"The government will continue to work with the company to protect vital jobs for Northern Ireland", she said on Twitter.

A Bombardier C-Series Jet.

The department has proposed a huge 220 per cent tariff on the imported sale of Bombardier's new C-Series jets into the U.S. - an aircraft whose wings are made in Belfast.

Fallon, who had earlier warned Boeing it could lose out on British contracts because of the trade dispute which could risk 4,200 Bombardier jobs in Northern Ireland, told Reuters Britain would not cancel orders for nine P-8 spy planes and 50 Apache helicopters.

The preliminary decision came after complaints by rival aerospace multinational Boeing, which argued Bombardier received unfair funding from the United Kingdom and Canada, allowing the sale of airliners in the U.S. under cost price.

The Government has warned the USA company Boeing that its trade dispute with its Belfast-linked rival, Bombardier, "could jeopardise" its United Kingdom defence contracts.

"The US Department of Commerce today affirmed that Bombardier has taken massive illegal subsidies in violation of existing trade law", Boeing said after a September 26 preliminary ruling by the Commerce Department. "It's the Labour Party which will act to protect Island workers, while Theresa May holds Donald Trump's hand while he attacks British interests".

"We strongly disagree with the Commerce Department's preliminary decision", Bombardier said. "It's high time she woke up".

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The Canadian government was poised to purchase 18 Super Hornet fight jets from Boeing as an emergency interim measure in order for the Royal Canadian Air Force (RCAF) to fulfill its operational roles for North Atlantic Treaty Organisation and NORAD.

The U.S. Commerce Department has slapped preliminary anti-subsidy duties on Bombardier's CSeries jets after rival Boeing accused Canada of unfairly. In such a scenario, the Chinese would surely be interested in buying the technology and know-how of what many consider the best aircraft in its category. Bombardier valued the firm order at $5.6 billion based on the list price of the aircraft. "I'd say that the long-term partnership is being undermined by this behaviour by Boeing".

Bombardier's (OTCQX:BDRAF, OTCQX:BDRBF) EUR-denominated bonds due in 2021 have declined the most in more than two years after the US imposed import duties of 219% on the company's C-series plane.

"The US values its relationships with Canada, but even our closest allies must play by the rules", US commerce secretary Wilbur Ross said.

"They have to be very careful because let's not forget, there are a lot of Canadian companies that are suppliers to Boeing".

"Everyone realizes how important Bombardier is to Northern Ireland and we will use our influence with our government to make sure that continues", the DUP's Arlene Foster told Sky News.

The BBC's Simon Jack says the Prime Minister "may find it hard to keep her new best friends in the DUP sweet while not offending such an important employer in the rest of the UK".

The Canadian Chamber of Commerce also came to Bombardier's defense, saying the USA decision "penalizes Bombardier for receiving the same government support that other manufacturers across the globe get from their own governments".

(Copyright © 2015. All Rights Reserved.)
 
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