Canada launches WTO complaint over US auto tariffs

Canada has launched a complaint with the World Trade Organization over the steep tariff imposed on car imports by US President Donald Trump, the global trade body said Monday.

“Canada has requested WTO dispute consultations with the United States concerning US measures imposing a 25 percent duty on automobiles and automobile parts from Canada,” the organisation said.

The request was filed last Thursday — the day the additional levy came into effect for all cars and car parts not manufactured in the United States, but it was only circulated to WTO members on Monday.

In the request, the Canadian government charged that the tariffs were “inconsistent with United States’ obligations” under international trade laws.

Canada immediately hit back on the levies, saying Thursday it would impose a 25 percent tariff on tens of thousands of vehicles imported from the United States.

Since coming to power last January, Trump has unleashed a barrage of tariffs, and last week hit countries and goods around the world, sending markets crashing.

Canada was largely spared from the sweeping global tariffs Trump announced last Wednesday, as Washington granted an exemption to goods compliant with the US-Canada-Mexico free trade agreement, which covers most products.

But Canada, which is one of America’s largest trading partners, is still facing tariffs on steel, aluminium and other products, in addition to the levies on automobiles.

The tariffs on automobiles and auto parts are expected to be particularly painful in North America, where those markets are heavily integrated.

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 has launched separate WTO complaints over Trump’s previous tariff manoeuvres.