Canada has filed a formal complaint with the World Trade Organization in response to the steep tariffs imposed by United States President Donald Trump on automobile and auto part imports.
The global trade body made this announcement on Monday.
“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 organisation said in a statement.
The request for dispute consultations was submitted last Thursday—the same day the additional tariffs came into effect on all cars and parts not manufactured within the United States. However, the WTO only circulated the request to its members on Monday.
In its complaint, the Canadian government alleged that the U.S. tariffs were “inconsistent with United States’ obligations” under international trade laws, implying a violation of existing agreements within the multilateral trading system.
In swift retaliation, Canada announced on Thursday that it would impose a 25 per cent tariff on tens of thousands of vehicles imported from the United States.
Since assuming office in January, President Trump has aggressively pursued protectionist trade policies, rolling out a wave of tariffs on various countries and goods. His most recent moves triggered widespread global backlash and sent international markets into turmoil.
Although Canada was largely exempted from the broader global tariffs announced by Trump last Wednesday—thanks to Washington’s exemption for goods that comply with the United States-Mexico-Canada Agreement, which governs most North American trade—it is still being affected by several key trade penalties.
Despite the exemption on many goods under USMCA, Canada remains subject to U.S. tariffs on steel, aluminium, and now automobiles and automotive components. These latest tariffs are anticipated to have significant repercussions across North America, where the auto industry is deeply integrated.
WTO rules stipulate that dispute consultations offer the involved parties an opportunity to resolve the matter amicably without initiating formal litigation. If, after 60 days, the parties fail to reach a resolution through consultations, the complainant—in this case, Canada—may escalate the case by requesting adjudication by a WTO dispute panel.
