Bombardier, Inc. (TSX:BBD.B) stock was down 10.35% in morning trading on September 27 after the U.S. Department of Commerce hit the Canadian jet maker with a 220% duty on all CSeries jets headed to the U.S. Bombardier released a statement in which it called the duty “absurd” and promised to continue the fight.
Bombardier angrily pointed out that U.S. trade laws were being incorrectly applied in this case as Boeing Co. was using its leverage to defend its market share. The grievance was initially launched in April that alleged Bombardier was the beneficiary of subsidies from Quebec and the United Kingdom that was giving it an unfair advantage.
For its part, Boeing stock was up marginally – 0.45%, in the same trading hours on September 27. The stock has climbed 66% in 2017.
The decision comes at a time when the Trump administration has struck a protectionist tone in its aim to boost U.S. job and economic growth. The decision will loom large as NAFTA negotiations continue and the U.S. looks to throw its weight around and obtain a better deal.
For Bombardier, this is obviously a huge setback after what was shaping up to be a comeback year. As of this writing the stock is now down 5.5% in 2017. It was also hit with same bad news earlier in the week when German conglomerate Siemens decided to partner up with Alstom in the rail business instead of Bombardier.
