UK

Bombardier Vs Boeing: Theresa May's Lobbying Fails To Stop US Imposing 220% Tariff

The DUP won't be pleased either.

27/09/2017 08:23 BST | Updated 27/09/2017 11:27 BST

Theresa May’s lobbying and “hand-holding” of Donald Trump has failed to stop the US imposing a massive interim tariff on a new model of passenger jet manufactured by Bombardier, one of Northern Ireland’s biggest employers.

Thousands of jobs in the country are now at risk and the Prime Minister has been accused of being “asleep at the wheel” over the imposition of the punitive import duty.

The US Department of Commerce (DoC) imposed an interim tariff of nearly 220% on new planes, sparked by complaints from rival Boeing that Bombardier received unfair state subsidies from the UK and Canada, allowing the sale of airliners at below cost prices in the US.

Kevin Lamarque / Reuters
May and Trump during the UN General Assembly in New York, US, earlier this month

Announcing the regulator’s preliminary finding on Tuesday, US secretary of commerce, Wilbur Ross, said the subsidisation of goods by foreign governments was something that the President’s administration “takes very seriously”.

The row deals a blow to May’s efforts to negotiate a “sweetheart deal” with the US post-Brexit and could put the Government at odds with their DUP partners. 

The PM said on Wednesday morning she is “bitterly disappointed” by the decision, reports the Press Association.

Bombardier labelled the determination “absurd”, while the UK Government said it was “disappointing” and pledged to defend UK interests “at the very highest levels”.

However, unions warned the preliminary determination was “unlikely” to be overturned by Trump, who has been clear in his aim to fiercely protect American jobs, casting a shadow over the industry’s future in Northern Ireland.

Clodagh Kilcoyne / Reuters
People working on C Series aeroplane wings in the Bombardier factory in Belfast, Northern Ireland.

More than 4,000 people are employed in Belfast by the Canadian multinational and thousands more jobs in Northern Ireland are supported through the manufacturer’s supply chain, according to trade unionists.

Ross Murdoch, the GMB union’s national officer, said the initial ruling was a “hammer blow” to Belfast and risked sending shock waves through Northern Ireland’s economy.

“Theresa May has been asleep at the wheel when she could and should have been fighting to protect these workers. It’s high time she woke up,” he said.

Another 9,400 supply chain jobs could be wiped out in Northern Ireland on top of those directly employed at the plant, Murdoch warned.

“That’s 14,000 people in Northern Ireland now in jeopardy,” he said.

Jimmy Kelly, Unite Regional Secretary, said: “The decision taken by the US Department of Commerce was not unexpected – unfortunately it is unlikely to be overturned by president Trump whose protectionist tendencies are well-known.

“The threat of punitive tariffs on the C-Series will cast a shadow over Bombardier’s future unless the company can source alternative and substantial sales outside the US market.”

The Department of Commerce’s enforcement and compliance unit is responsible for vigorously enforcing US trade laws and does so through an impartial, transparent process that abides by international rules and is based solely on factual evidence, its statement said.

It added: “Imports from companies that receive unfair subsidies from their governments in the form of grants, loans, equity infusions, tax breaks and production inputs are subject to ‘countervailing duties’ aimed at directly countering those subsidies.