Defeat for Boeing – and for Trump

With punitive tariffs of almost 300 percent, the Trump government wanted to protect Boeing from the Canadian competitor Bombardier. But just a US arbitration board held nothing of it.

In the trade dispute with Canada, a major US agency rejected Boeing’s allegation of illegal subsidies to rival Bombardier from the neighboring country. The supply of “CSeries” aircraft was not a pity for the US industry, according to the US International Trade Commission (USITC), a tribunal responsible for commercial disputes.

With the surprise decision, according to observers, punitive tariffs of nearly 300 percent will also remove the basis that the government of US President Donald Trump wanted to impose on Bombardier.

Boeing had accused the Canadian competitor, only through unfair price competition and illegal government funding won a major contract with the US airline Delta Air Lines.

With 4: 0 decided
The USITC decision fell four-to-zero, meaning a blistering defeat for Boeing. The same applies to Trump and his Ministry of Commerce, which had sided with Boeing in the conflict and wanted to impose unusually high anti-dumping duties.

Boeing was disappointed. Bombardier, on the other hand, celebrated the decision in a statement as “a victory for innovation, competition and legality”. Canadian shares shot up in Toronto by about 15 percent.

Alliance with Airbus
In the course of the clashes Bombardier had already sought refuge with Airbus. The Europeans had announced in mid-October to take over the majority of the C aircraft series of Canadians. Since Airbus could produce the jets in the US, one could have escaped the impending punitive tariffs as well.

The US is generally in the grip of trade policy with its neighbors Canada and Mexico – Trump sees its country treated unfairly and threatens to terminate the free trade pact Nafta. For months, the partner countries have been negotiating a reorganization of the agreement – but so far with little success.

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