A ruling by the U.S. Commerce Department about alleged subsidies for airplanes built in Canada could move the U.S. and its neighbor to the north toward a costly trade war.
The International Trade Commission, a committee within the Commerce Department, ruled in favor of Boeing after the company complained Canada-based Bombardier received government subsidies allowing it to sell its new C Series airplane at a steep discount.
The ITC not only agreed with Boeing, it determined Bombardier’s planes should be slapped with a 219.63 percent tariff, far higher than Boeing was proposing.
“The U.S. values its relationships with Canada, but even our closest allies must play by the rules,” said Commerce Secretary Wilbur Ross. “The subsidization of goods by foreign governments is something that the Trump Administration takes very seriously, and we will continue to evaluate and verify the accuracy of this preliminary determination.”
A ruling by the U.S. Commerce Department about alleged subsidies for airplanes built in Canada could move the U.S. and its neighbor to the north toward a costly trade war.
The International Trade Commission, a committee within the Commerce Department, ruled in favor of Boeing after the company complained Canada-based Bombardier received government subsidies allowing it to sell its new C Series airplane at a steep discount.
The ITC not only agreed with Boeing, it determined Bombardier’s planes should be slapped with a 219.63 percent tariff, far higher than Boeing was proposing.
“The U.S. values its relationships with Canada, but even our closest allies must play by the rules,” said Commerce Secretary Wilbur Ross. “The subsidization of goods by foreign governments is something that the Trump Administration takes very seriously, and we will continue to evaluate and verify the accuracy of this preliminary determination.”
Source: CNBC
