US-Canada Trade War Escalates, Ottawa Seeks WTO Action Over New Tariffs

As the US & Canada trade wars continue, Canada has requested consultations at the World Trade Organization (WTO) over the tariffs.

US President Donald Trump's new 25 per cent tariffs on imports from Canada and Mexico took effect on Tuesday.

Source : PTI

Amid the recent tariffs imposed by the US, Canada has requested consultations on "unjustified tariffs" at the World Trade Organization (WTO), Canada’s ambassador to the WTO in Geneva said on Wednesday.

According to Ambassador Nadia Theodore, in a statement on LinkedIn, the US decision left it with a “no choice” but to protect Canadian interests. A WTO spokesperson confirmed the receipt of Canada's request for consultations, as per Reuters.

US President Donald Trump's new 25 per cent tariffs on imports from Canada and Mexico took effect on Tuesday. These actions, which could disrupt nearly $2.2 trillion in annual trade, were taken after Trump declared that these three US trading partners had not done enough to curb the flow of fentanyl and its precursor chemicals into the US.

"Everyone plays their position. I played mine today and on behalf of the Government of Canada, requested WTO consultations with the Government of the United States in regard to its unjustified tariffs on Canada," Theodore said, as per Reuters. Bilateral WTO consultations serve as the initial stage of formal dispute resolution. If no solution is reached within 60 days, Canada may seek adjudication from the Geneva-based organization's Dispute Settlement Body.

On Tuesday, Canadian Prime Minister Justin Trudeau said that Trump’s tariffs on Canadian imports were “a very dumb thing to do” and announced that Ottawa was responding immediately. He announced immediate 25 per cent tariffs on C$30 billion (Canadian Dollars) worth of US imports. If need be, Canada will target another C$125 billion worth in 21 days, he said.

Exemption from tariffs for automakers

Meanwhile, Trump announced a one-month exemption from his new tariffs on imports from Mexico and Canada for US automakers, amid concerns that the newly launched trade war could severely impact domestic manufacturing. The pause follows a conversation between Trump and the leaders of the "Big Three" automakers— Ford, General Motors, and Stellantis — on Wednesday, according to White House press secretary Karoline Leavitt.

According to the Associated Press (AP), Leavitt said Trump was blunt with the automakers seeking an exemption, “He told them that they should get on it, start investing, start moving, shift production here to the United States of America where they will pay no tariff.”