Bombardier is pushing hard for orders in China, the world's fastest-growing aviation market, at a time when it faces threats to USA sales of the C-Series single-aisle jet because of a trade dispute with US rival Boeing Co (BA.N).
The Guardian writes: "The extra charge would more than triple the cost of a C-Series aircraft sold in the USA to about $61 [million] per plane, based on Boeing's assertion that Delta received the planes for $19 [million] each".
As these jets are partially manufactured at a purpose-built facility in Northern Ireland which employs more than 1000 workers, the United Kingdom government responded with harsh rhetoric to the U.S. decision. A final decision is due in February next year.
Bombardier, based in Montreal, said it strongly disagreed with the trade ruling in favor of Boeing, based in Chicago.
The department said it imposed a steep 219.63 percent countervailing duty on Bombardier's new commercial jets after it made a preliminary finding of subsidization. In a statement Tuesday, the Chicago-based manufacturer of the 737 described Bombardier's "massive illegal subsidies" as a "violation of existing trade law".
British Prime Minister Theresa May's minority Conservative government depends on backing from the DUP for their control of the British parliament.
Boeing's behaviour in a USA trade dispute with Bombardier, which threatens thousands of jobs in Belfast, could jeopardise its trading relationship with the Government, Defence Secretary Sir Michael Fallon has warned.
But Foreign Affairs Minister Chrystia Freeland made no mention of retaliatory action in a statement released after the ruling, promising instead to continue raising the dispute with USA officials at all levels.
It's also extremely rich for Boeing to moan about government aid to a small competitor when it has benefited from decades of lavish support from the USA defence department.
It said Boeing employed more than 18,000 people either directly or through supply chains in the United Kingdom and had chosen to build its first European factory in Sheffield. The U.S Commerce Department slapped duties of almost 220 percent on Canada's Bombardier C Series aircraft Tuesday, Sept. 26, 2017, in a victory for Boeing that is likely to raise tensions between the United States and its allies Canada and Britain. The roughly $3 billion in funding allows Bombardier to significantly lower the cost per aircraft and give it a competitive advantage against other companies, Boeing argued. Then the International Trade Commission - an independent federal agency that rules on trade cases - will decide early next year whether to uphold Commerce's duties.
Fallon said Boeing was a "major defence partner", and stood to "gain a lot of British defence spending".