The US Government has made the decision to impose a 220% tariff on the Bombardier C series jet recently. It is thought that this new tariff will be the first of many ‘tactical tariffs’ that could be imposed on the UK after Brexit. The wings of the Bombardier C series are produced in Northern Ireland and the precedence set by the US could cause challenges for Post Brexit Britain.
Fastline International have expressed their concern about the tactical tariffs. The Head of Consumer Research for Fastline, David Jinks MILT has suggested that the huge 219.63% tariff imposed by the US is a sign of business to come when Britain leave the EU. The tariff has been imposed even after Prime Minister Theresa May made a personal plea to the US President Donald Trump. It has been decided by the US Department of commerce that the Bombardier has received unfair state subsidies from the UK and Canada as an explanation of the staggering tariff.
Fastline have warned that once the UK leaves the European Union they will fall outside of a number of long standing trade agreements that have been formed with the rest of the world. This also means that the UK will not have the same impact that it once had as a part of the EU. Signing a new trade deal with the US will open up a whole new market for trading. However, at the moment, Trump is ensuring that the US becomes more isolationist and protectionist which could lead to further excuses about state subsidies on other UK products and more tariffs. This action could also be replicated by other companies around the world.
If Britain can’t establish a good Brexit deal, then fall outside of the Single Market, there will also be tough EU tariffs for shipping goods into Europe. The Staggering tariff that has been imposed on Bombardier has come about following a complaint from Boeing, the US manufacturer. After Brexit, will the same happen is General Motors Cadillac and Harley Davidson complains about British Jaguar or Triumph imports.