Bombardier called the ruling absurd.
“This result underscores what we have been saying for months: The U.S. trade laws were never intended to be used in this manner, and Boeing is seeking to use a skewed process to stifle competition and prevent U.S. airlines and their passengers from benefiting from the C Series,” the company said in a prepared statement.
At issue is an order for up to 125 Bombardier C Series planes from Delta in 2016. Boeing claims Bombardier sold each plane for millions less than the list price of $80 million. Boeing claims Bombardier was able to undercut the price of a Boeing 737 because of subsidies from the Canadian government.
“Subsidies enabled Bombardier to dump its product into the U.S. market, harming aerospace workers in the United States and throughout Boeing’s global supply chain,” Boeing said in a statement after the Commerce Department ruling.
Next week, the ITC could impose another tariff on C Series planes when it rules on another Boeing complaint that Bombardier dumped its planes in the U.S. at unfair prices.
The Commerce Departments decision has been expected for weeks, prompting Canada to threaten it may cancel a $5.2 Billion order for Boeing F/A-18 Super Hornet fighter jets.