After a complaint from US aviation giant Boeing, the Department of Commerce has proposed slapping a 219% tariff on the import of C-Series jets from Canadian-owned Bombardier. The move—which still needs approval from the US International Trade Commission—would be in keeping with President Trump's goal of promoting US business. But it also "threatens to spark a trade war involving the US, Canada and the UK," reports the Financial Times. Already, Canada and the UK—where Bombardier employs 4,000 people at a factory in Northern Ireland, per the Telegraph—have hinted at a Boeing boycott. More:
- Boeing's complaint: It argues unfair subsidies from Canada and the UK allowed Bombardier to sell its C-Series jets at below cost in the US, leading to a $5.6 billion contract with Delta. Bombardier says the complaint is "absurd" given that Boeing didn't even bid for the contract.
- Bombardier should be scared: The tariff could sink the Delta deal, which represents 20% of C-Series sales so far, and keep the C-Series jets out of the world’s largest aircraft market. That's especially bad news for Bombardier as it’s facing more than $7 billion in debt and increased competition from Germany's Siemens AG, per Reuters.