The U.S. Commerce Department upheld on Wednesday the almost 300 per cent in duties that Bombardier will face on C Series passenger jets delivered in the U.S.
Boeing, which launched the trade case in April, is arguing that Canadian and British governments are subsidizing the plane's cost, allowing Bombardier to sell into the USA market at unfairly low prices.
But Bombardier argues that Boeing isn't threatened by the sales of the C Series because it doesn't sell an 100-seat airplane to suit the needs of airlines like Delta, which ordered 75 planes in April 2016 to update its fleet. The complaint found a receptive ear in President Donald Trump, whose "America First" agenda has included taking a tough line in matters of worldwide commerce. However, the decision had been temporary while the USA decided how to best proceed in the matter.
"The United States is committed to a free, fair and reciprocal trade and will always stand up for American workers and companies being harmed by unfair imports", Ross said.
In a response the Commerce decision, Bombardier stated: "The evidence presented Monday at the U.S. International Trade Commission demonstrated that Boeing's petition is an unfounded assault on airlines, the flying public, and the U.S. aerospace industry".
Bombardier said it turned over the Delta sales contract but can not accurately estimate the cost and price of those planes because they are being built and delivered in coming years.
Bombardier calls Boeing's criticism an "unfounded assault on airlines, the flying public, and the U.S. aerospace industry", saying the entire complaint has been overtaken by events.
In a twist, European aerospace company Airbus, Boeing's chief rival, swooped in October, agreeing to buy a majority stake in the struggling C Series program.
Bombardier also has argued that Boeing does not manufacture a direct competitor to the CS 100, and its robust order book of 737 planes proves it has not been adversely affected by unfair trade. The criteria of material injury to a USA company is the usual standard for Washington to launch a trade case and impose punitive duties on a particular import.
A ruling by the ITC that the CSeries pricing and government support harmed Boeing will add another setback to Bombardier's commercial aircraft business.
Chrystia Freeland, Canada's minister of foreign affairs, said the decision to impose high duties hurts workers on both sides of the border.
"The C Series would not even exist at this point but for those subsidies", Boeing said, adding that the support enabled the company "to dump aircraft into the USA market at absurdly low prices".
Boeing celebrated its victory Wednesday.
Bombardier says more than half of the value of CSeries content comes from the United States, including engines by Pratt & Whitney. The U.S. decision means that the relations between the country and its neighbor, Canada are likely to be terribly strained.