Of us sanctions, additional restrictions are imposed to Bombardier
00:46, Oct 8, 2017
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In a statement Boeing said:"Today's decision follows a fact-based investigation by the Commerce Department and it validates Boeing's dumping complaints regarding Bombardier's pricing in the United States".
The US is seeking to impose even more tariffs on Bombardier's aircraft, which are built in Northern Ireland, proposing hiking trade duties on the C-Series to nearly 300pc. The Commerce department also still needs to issue a final ruling in both cases.
The Trudeau government has condemned Boeing for its complaint and has vowed to back Bombardier.
Bombardier can appeal the decision to a United States court or to a dispute-resolution panel created under the North American Free Trade Agreement (NAFTA).
Canadian-owned multinational Bombardier, which employs more than 4,000 people in Belfast, has been hit by a proposed 80% levy on exports to its southern neighbour, the US Department of Commerce has confirmed.
The decision intensifies political pressure on NAFTA negotiators ahead of next week's resumption of talks among Canada, Mexico and the U.S.
The U.S. Secretary of Commerce Wilbur Ross said: "The United States is committed to free, fair and reciprocal trade with Canada, but this is not our idea of a properly functioning trading relationship".
Boeing alleges the unfair subsidy stems from when Northern Ireland's power-sharing administration and the UK Government pledged to invest almost £135m to help set up a C-Series manufacturing site in Belfast.
The spiralling cost, which could more than triple the price of the jets sold in the U.S. could also threaten the order for over 75 aircraft from Delta Airlines.
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.
The duties, which would affect an order for 75 planes by Delta Air Lines, would not take effect unless approved by the U.S. International Trade Commission early next year. Neither Delta nor Bombardier immediately responded to requests for comment.
It says Boeing can't justify its claim of being harmed since it doesn't make a plane the size of the CS100.
Announcing the latest tariff, USA commerce secretary Wilbur Ross said: "The United States is committed to free, fair and reciprocal trade with Canada, but this is not our idea of a properly functioning trading relationship".
The programme also received $1bn from the Canadian provincial government in Quebec in 2015 when its fortunes appeared to be ailing.
The South American nation began WTO consultations in February, saying Canada ran afoul of trade rules because its policies unfairly bolstered the domestic aerospace industry to the detriment of Embraer SA, an airplane producer based in Sao Jose dos Campos, Brazil.
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