Then, over the border the finished, packaged products go, tariff-free, under the auspices of NAFTA.
Separately, I'll mention that I've heard commentary on Canadian news to the effect that the Provincial and perhaps National governments provided assistance -- not taking an ownership stake; rather, direct financial assistance -- to Bombardier to aid in development of the jet.
To the extent that expected returns, financial and employment and whatever, are now leaving the Province and Canada, this leaves those governments out in the cold and deprived of expected returns. I don't know all the details of this, and perhaps what I heard was biased, but it was described at length and very critical e.g. of the governments not having built greater assurances into the aid they provided.
> Arch-rival Airbus has swooped from the wings to grab majority control of the C-Series and proclaim that the 300% tariffs can be side-stepped via the simple remedy of conducting the final assembly of planes destined for US customers in Alabama.
So, how much of a final assembly counts as final assembly? I remember a story of how Chinese shirtmakers circumvented tariffs against Made in China shirts: they sent the body of the shirt and sleeves to Hong Kong, workers in Hong Kong sewed the sleeves onto the shirt, slap "Made in Hong Kong" on it, and problem solved...
Apparently I'm not the one asking this question: http://www.chicagotribune.com/business/ct-biz-airbus-bombard...
> "There is a legal question of how much of the parts and components and value-added needs to actually happen in the U.S. for tariffs to no longer apply," said Chad Bown, a senior fellow with the Peterson Institute for International Economics. "You can't just fly an airplane to Alabama and say it's made in America."