Canada challenges US auto tariffs in global trade court

Canada has officially filed a complaint with the World Trade Organization (WTO) over the United States’ imposition of a 25 per cent tariff on automobile and auto part imports.

The move marks the latest development in the ongoing trade tensions between the two countries, Caliber.Az reports via foreign media.

The Canadian government initiated the complaint on April 4, the same day the additional tariffs came into effect. The tariffs, which target all cars and auto parts not manufactured in the United States, were announced by US President Donald Trump and have raised concerns in Canada, a major trading partner of the US.

The WTO confirmed that Canada has requested "dispute consultations" with the United States regarding the tariffs. In its request, the Canadian government argued that the US measures are "inconsistent with United States' obligations" under international trade laws.

"Canada has requested WTO dispute consultations with the United States concerning US measures imposing a 25 per cent duty on automobiles and automobile parts from Canada," the WTO said in a statement.

In response to the US action, Canada swiftly announced its own countermeasures, stating that it would impose a 25 per cent tariff on tens of thousands of vehicles imported from the United States. This retaliatory move aims to balance the trade impact and protect Canadian industries from what it deems unfair trade practices.

The dispute centers on the legal justification for the tariffs, which the US argues are necessary for national security reasons. However, Canada maintains that the US tariffs are unjustified under international trade agreements, and that they disproportionately affect Canadian manufacturers.

The issue is now set to be reviewed by the WTO, which could eventually lead to a formal resolution of the dispute between the two countries. Until then, both nations will likely continue to face economic challenges as the trade conflict unfolds.

By Vafa Guliyeva