The U.S. Commerce Department on Friday notched up proposed trade duties on Bombardier Inc (BBDb.TO) CSeries jets to almost 300 percent, affirming Boeing Co's (BA.N) complaint that the Canadian company received illegal subsidies and dumped the planes at "absurdly low" prices.
In a statement, Boeing said the Department of Commerce had "affirmed the magnitude to which Bombardier has dumped C Series aircraft in the United States, selling those aircraft at prices millions below production cost in an illegal effort to grab market share in the USA single-aisle airplane market".
The wings for the new aircraft are made at Bombardier's plant in the DUP stronghold of East Belfast.
The Chicago-based aircraft giant said it welcomes the decision affirming its view that Bombardier sold the CSeries to Delta at prices below production cost to illegally grab market share in the single-aisle airplane market.
Bombardier has said it strongly disagrees with the preliminary decision, with a final ruling in the case due next year.
Bombardier will likely learn today about anti-dumping duties over its CSeries commercial jet. The duty comes on top of a 219.63 percent duty announced last week for "countervailable subsidies" in financing the CSeries aircraft.
It added that Bombardier had received over $3 billion in subsidies from the Canadian government in Ottawa and the Quebec provincial government combined.
"The United States is committed to a free trade, fair and reciprocal with Canada, but this does not correspond to our idea of a business relationship which is working properly", said the secretary of Commerce, and Wilbur Ross.
The Bombardier tariff row has been taken up a notch after the US Department of Commerce has ruled again in favour of US rival Boeing.
Bombardier can appeal any sanctions to a United States court or to a dispute-resolution panel created under the North American Free Trade Agreement.
"This determination confirms that, as Boeing alleged in its petition, Bombardier dumped its aircraft into the USA market at absurdly low prices", the company said in a statement.
Delta, which reports earnings next week, has said it is confident the proposed tariffs will be rejected because no USA companies produce aircraft the same size as the Bombardier jet.
Bombardier is facing a planned 220% tariff as part of a separate investigation, the US Department of Commerce confirmed.
Last month, the US government approved the sale of 18 Boeing Super Hornet jets to the Canadian military, at a cost of 6.4 billion Canadian dollars (about 5.1 billion USA dollars), to replace Canada's aging fleet of CF-18 Hornets from McDonnell Douglas, which merged with Boeing in 1997.
"We will continue to verify the accuracy of this decision, while do everything in our power to stand up for American companies and their workers".
The programme also received a billion U.S. dollars from the Canadian provincial government in Quebec in 2015 when its fortunes appeared to be ailing.