On Thursday, Canada filed a complaint with the World Trade Organization regarding the comprehensive implementation of 25 percent tariffs on steel and aluminum imports by US President Donald Trump.
These significant tariffs, which took effect on Wednesday, included no exemptions, despite efforts from various countries to prevent their implementation.
According to the WTO, “Canada has requested consultations regarding the imposition of import duties by the United States on specific steel and aluminum products originating from Canada.”
The WTO further noted, “Canada asserts that these measures, which eliminate its exemption from additional duties on certain steel and aluminum products and raise duties on aluminum items effective March 12, are inconsistent with U.S. obligations.”
Canada is the primary supplier of steel to the United States, followed by Brazil and the European Union.
The United States relies on imports for approximately half of its steel and aluminum, which are essential for manufacturing products such as automobiles, airplanes, and soft drink cans.
Trump’s objective is to safeguard the struggling U.S. steel industry, which is facing increasing competition, particularly from Asia.
Canada’s request for consultations marks the formal initiation of a dispute within the WTO, headquartered in Geneva.
These consultations provide an opportunity for both parties to engage in discussions and seek a mutually agreeable resolution without escalating to litigation.
If the consultations do not lead to a resolution within 60 days, the complainant may seek adjudication from a panel.
Additionally, Canada had previously filed a separate complaint with the WTO on March 4 regarding Trump’s earlier tariff actions.
Shortly after resuming office on January 20, Trump announced, and subsequently paused, the implementation of blanket 25 percent tariffs on imports from key trading partners, including Canada and Mexico, citing their failure to address illegal immigration and drug trafficking.
