The Wall Street Journal: Delta doesn’t expect to pay tariffs on new Bombardier jets

Delta Air Lines Inc. said it doesn’t expect to have to pay any tariffs on Bombardier Inc. jetliners it has on order despite recent U.S. trade action.

Trade officials in Washington have proposed tariffs that would potentially quadruple the price of Bombardier’s CSeries planes for U.S. buyers after upholding a complaint from Boeing Co. BA, +0.20%   that the Canadian aircraft maker benefited from unfair government subsidies. However, Delta Chief Executive Ed Bastian on Wednesday said Boeing’s case is weak and deemed it is unlikely tariffs will be imposed.

He said on an earnings call that initial deliveries from Delta’s 75-plane order slated for next spring could be delayed as it works through the issues with Bombardier, but the airline still expects to pay the contractual price.

Atlanta-based Delta DAL, +0.70%   has called for the case to be dropped, arguing that Boeing wasn’t harmed as it didn’t offer a competing jet. Canada and Montreal-based Bombardier BBD.B, +4.44%   have also rejected the U.S. claims. A U.S trade panel is due to rule in February on whether Boeing suffered any harm. The tariffs would kick in if harm is found.

An expanded version of this report appears on WSJ.com.

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