US confirms 300% duties on disputed Bombardier jets, a win for Boeing

Jasper Juinen | Bloomberg | Getty Images

A Bombardier CS300 C Series aircraft, manufactured by Bombardier Inc.

The U.S. Commerce Department on Wednesday finalized duties of nearly 300 percent on passenger jets made by Bombardier, a win for Boeing, which lodged the complaint against its Canadian rival.

The decision follows the Commerce Department’s preliminary recommendation of duties of that amount on Bombardier’s C Series jets, earlier this autumn.

The trade dispute has ensnared Delta Air Lines, which agreed to buy at least 75 of the 100-150 seat jets from Bombardier in 2016.

In October, European aerospace giant Airbus, Boeing’s chief rival, said it would take a majority stake in the C Series program. Boeing alleged that Bombardier sold the planes below cost and received unfair subsidies from Canada’s government.

But the Commerce Department’s statement on Wednesday said that Bombardier, petitioners and the government of Canada agreed that that proposed agreement “does not impact these investigations.”

The U.S. International Trade Commission is expected to make a determination if Boeing was harmed by Bombardier’s actions, a decision that will determine whether the investigation will be terminated. That decision is due by Feb. 1.