Delta is Refusing to Pay Tariffs on Bombardier CSeries Jets

Oct 11, 2017

This post contains references to products from one or more of our advertisers. We may receive compensation when you click on links to those products. Terms apply to the offers listed on this page. For an explanation of our Advertising Policy, visit this page.

The launch of the Bombardier CSeries jet isn’t going so well, at least in the US. Despite receiving an order for 75 Bombardier CS100 jets from Delta, the company has since faced multiple setbacks at the hands of US regulators. The latest blow was dealt by the US Department of Commerce on Friday, increasing the tariffs US customers have to pay on the new jets to 300%.

The tariffs are being levied after Boeing filed a formal complaint that Bombardier had received government subsidies from the Canadian government. The filing claimed that the Canadian manufacturer sold the aircraft to Delta at “absurdly low” prices to undercut the Boeing 737. Delta has argued that Boeing doesn’t have a comparable jet to the 110-seat 2-3 arranged Bombardier CS100. Yet, US regulators have sided with Boeing.

After the initial 220% tariff was announced, Delta CEO Ed Bastian called the ruling “absurd” and said that the move would make the aircraft unaffordable. So, analysts and investors were anxious to hear what Delta’s executives had to say about the new ruling at the company’s Q3 earnings call Wednesday morning.

And, they weren’t disappointed. Calling the new ruling “nonsensical”, Delta’s CEO stated “We’re not going to be forced to pay tariffs or anything of the ilk.” With Bombardier and Delta both refusing to foot the bill for the 300% tariffs, it seems that Delta’s Bombardier order will be pulled if the duties are confirmed by the U.S. International Trade Commission (ITC) early next year.

Chase Sapphire Preferred® Card

WELCOME OFFER: 60,000 Points


CARD HIGHLIGHTS: 2X points on all travel and dining, points transferrable to over a dozen travel partners

*Bonus value is an estimated value calculated by TPG and not the card issuer. View our latest valuations here.

Apply Now
More Things to Know
  • Earn 60,000 bonus points after you spend $4,000 on purchases in the first 3 months from account opening. That's $750 toward travel when you redeem through Chase Ultimate Rewards®
  • 2X points on travel and dining at restaurants worldwide & 1 point per dollar spent on all other purchases.
  • Get 25% more value when you redeem for airfare, hotels, car rentals and cruises through Chase Ultimate Rewards. For example, 60,000 points are worth $750 toward travel
  • Get unlimited deliveries with a $0 delivery fee and reduced service fees on orders over $12 for a minimum of one year on qualifying food purchases with DashPass, DoorDash's subscription service. Activate by 12/31/21.
  • Earn 5X points on Lyft rides through March 2022. That’s 3X points in addition to the 2X points you already earn on travel.
Intro APR on Purchases
Regular APR
15.99%-22.99% Variable
Annual Fee
Balance Transfer Fee
Either $5 or 5% of the amount of each transfer, whichever is greater.
Recommended Credit

Editorial Disclaimer: Opinions expressed here are the author’s alone, not those of any bank, credit card issuer, airlines or hotel chain, and have not been reviewed, approved or otherwise endorsed by any of these entities.

Disclaimer: The responses below are not provided or commissioned by the bank advertiser. Responses have not been reviewed, approved or otherwise endorsed by the bank advertiser. It is not the bank advertiser’s responsibility to ensure all posts and/or questions are answered.