Canada launched a complaint with the World Trade Organization on Thursday over U.S. President Donald Trump’s across-the-board imposition of 25 per cent steel and aluminum tariffs.
The steep levies, which came into force on Wednesday, contained no exemptions despite countries’ efforts to avert them.
“Canada has requested WTO dispute consultations with the United States regarding the imposition by the United States of import duties on certain steel and aluminium products from Canada,” the WTO said.
“Canada claims that the measures, which terminate Canada’s exemption from additional duties on certain steel and aluminium products and increase duties on aluminium articles, and which took effect on March 12, are inconsistent with U.S. obligations,” the global trade body said.
Canada is the leading supplier of steel to the U.S., followed by Brazil and then the European Union.
The United States imports around half the steel and aluminium used in the country to make items ranging from cars and aeroplanes to soft drink cans.
Trump’s goal with the steel and aluminum tariffs is to protect the declining U.S. steel industry as it faces growing competition, especially from Asia.
Canada’s request for consultations formally initiates a dispute in the Geneva-based WTO.
Consultations give the parties an opportunity to discuss the matter and to find a satisfactory solution without proceeding further with litigation.
After 60 days, if consultations have failed to resolve the dispute, the complainant may request adjudication by a panel.
Canada launched a separate WTO complaint on March 4 over Trump’s previous tariff manoeuvres.
Shortly after Trump returned to office on Jan. 20, he announced — and then paused — blanket 25 per cent tariffs on imports from major trading partners Canada and Mexico, accusing them of failing to stop illegal immigration and drug trafficking.
