What's at stake is more than an individual trade dispute. Please vote, and stay for the top economics links and haiku.
Earlier this week, the U.S. Commerce Department announced a jaw-dropping 219 percent tariff on the new commercial airliner from Canada’s Bombardier, concluding it had received unfair government subsidies from the Canadian and British governments. Complainant Boeing had asked for a 79 percent levy.
More tariffs could come next month when the department rules on whether the deal Bombardier gave Delta Air Lines is price dumping. The case involves Delta’s purchase of the Canadian company’s CSeries airliners.
Usually these cases go on for years before the World Trade Organization. But this is the most vigorous application of President Trump’s economic nationalism. In practice, it could make the CSeries unaffordable for U.S. carriers. Canada has already retaliated, putting a $5.2 billion Boeing defense contract on hold. My colleague Dominic Gates spoke to analysts who said the ruling could badly backfire. Not only could Boeing lose overseas business, but other countries could use the new American example to effectively block other U.S. exports.
All might be smoothed over in the end. But given this state of play, what do you think?
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This Week’s Links:
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• The fall, rise and fall of creative destruction | Justin Fox
Today’s Econ Haiku:
New media game
Keeping up with the Jones Act