A US decision to slap steep anti-subsidy duties on Bombardier Inc (BBDb.TO) jets should bolster Brazil's case against Canadian subsidies at the World Trade Organisation, the chief executive of Brazilian planemaker Embraer SA (EMBR3.SA) said on Wednesday.
Although it is a private company, successive Canadian governments have treated Bombardier like a national symbol.
Boeing's complaint stems from a 2016 Delta Air Lines order for 75 firm and 50 optional C Series CS100 aircraft. That's not accurate, said Delta.
Under the 220 percent tariff, it would triple the price to about $61 million per jet.
The U.S. Commerce Department on September 26 said it was imposing preliminary countervailing duties of 220 percent against Bombardier's C Series jet.
Tuesday's preliminary ruling is only the first step along what could be a long road for the dispute, which has already become an global dogfight.
Commerce Secretary Ross, on a visit to Hong Kong, told reporters that part of the problem was Bombardier's lack of cooperation with the investigation.
"The magnitude of the proposed duty is absurd and divorced from the reality about the financing of multibillion-dollar aircraft programs".
"Boeing's position in this case is unjustified and frankly not what we would expect of a long-term partner to the United Kingdom - as well as damaging the wider global aerospace industry".
Canada is in the midst of negotiations to buy 18 Boeing-made F/A-18 Super Hornet fighter jets for an estimated $5.15 billion.
"We will always defend Canadian companies and Canadian workers against unfair and costly protectionism".
United States aerospace giant Boeing has moved to impose punitive tariffs on Canadian plane-maker Bombardier, one of Northern Ireland's biggest employers.
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.
The dispute centres around a particular kind of aircraft, the C-series, which Bombardier manufactures in a purpose-built £520 million factory in Belfast.
British Prime Minister Theresa May had also sought to intervene in the dispute, asking President Trump to help protect jobs in Northesrn Ireland. "It is imperative that the British Government works to protect these vital jobs - the imposition of the tariffs could make Bombardier question remaining in Northern Ireland where it has operations in four locations".
The Canadian government said the complaint was just as likely to threaten U.S.jobs as those in Canada and Northern Ireland.
But there's no escaping the wider political context set by Trump's promise to "fight for every last American job" - a pledge he repeated last February at (no coincidence, surely) the factory in SC that assembles the Boeing Dreamliner passenger jet.
The Trudeau government and Boeing were in talks to find a settlement, but they fell apart in August and the Liberals have since stepped up public pressure on the Chicago-based company to drop its case.
Delta past year agreed to buy 75 of Bombardier's new CS100 aircraft, with an option for as many as 50 more.
The list price for the planes is around $6 billion. Each CS100 jet has a list price of almost $80 million.
The rift began when, in 2016, Delta secured a deal to bring Bombardier's C series to the USA market. It has argued the company has been able to sell aircraft in the USA at less than cost price because of government subsidies.