Bombardier Tariffs


(Hugh) #1

Anyone have any opinions on this? Is the US just being protectionist or is Bombardier receiving unfair subsidy and dumping? The economics seem rather complicated…

Either way it doesn’t look great for Northern Ireland…


#2

It feels to me that Bombardier are an unfortunate pawn in a very big game. My guess is Boeing are testing the US government’s enthusiasm for implementing Trump’s “US jobs first” policy.
There doesn’t seem to be much of a case, though, if as reported Boeing doesn’t even make a plane of the small size in dispute.
Sadly Canadian and UK jobs are being put at risk while the US draws a world trade line in the sand for the Chinese to consider.


(Geoff Pascoe) #3

It seems to me that the tariffs are insane. Sure, Bombardier were almost certainly selling the planes below cost, bit Boeing sold the first few hundred 787s below cost as well. It’s normal practice whilst assembly lines are brought up to speed. Boeing have also been the recipients of subsidies and tax breaks themselves.

Besides, even if you think Boeing are simple defending themselves, the tariffs are way higher than even Boeing asked for. Seems like somebody’s trying to make a point and Bombardier have just been caught in the middle.


(Tony Hoyle) #4

The problem is other countries will retaliate with similar fees, and suddenly Boeing are the losers, because they can’t sell outside the US without incurring high fees whereas the rest of the world trade with each other at no/minimal fees.

I can’t believe Boeing want that result… it’s being decided at a political level.


(Hugh) #5

Just to add another complex twist!

I think the US is going to have to back down on this now - for a start it is a trumped up charge (Airbus essentially buying out the project shows that - neither they or Boeing sell aircraft in the segment) and it would be dangerous to start applying tariffs to all Airbus aircraft given that a large proportion of US airlines rely on them and Airbus have a US plant. Politically, it wouldn’t be good to go against all the US’s Western Allies all at once…

Also, the C Series will now be built at the Airbus FAL in Mobile, Alabama. So the US would essentially be leveraging a 300% tariff against itself! (if that’s even possible given it’s now built on US soil)


#6

It seems to me it’s six of one, half dozen of the other. I don’t suppose for one minute that the really full facts are out. I’m sure both sides have had reasonably large subsidies at some point to secure jobs in their respective countries.

It’s just a battle of wills between governments. The only losers are the poor workers, innocent pawns in big industry/governmental games.