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The Wall Street Publication > Blog > Markets > Canada initiates WTO dispute over US imposing 25% duties on automobiles
Markets

Canada initiates WTO dispute over US imposing 25% duties on automobiles

Editorial Board Published April 7, 2025
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Canada initiates WTO dispute over US imposing 25% duties on automobiles
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FOX Enterprise’ ‘The Large Cash Present’ host Brian Brenberg be a part of ‘The Faulkner Focus’ to debate Canada initiating a WTO dispute criticism over Trump’s auto tariffs.

Canada has initiated a criticism with the World Commerce Group over President Donald Trump imposing 25% duties on automotive imports from the neighboring nation.

The worldwide commerce physique stated that Canada requested consultations on Thursday as step one in launching the formal WTO commerce dispute. 

“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 WTO stated on Monday. 

The criticism claims Trump’s measures breached earlier authorized agreements below the Common Settlement on Tariffs and Commerce, which established guidelines governing how international locations can use tariffs on buying and selling companions. The system was additionally created to stop commerce wars, particularly throughout occasions when international locations entered a cycle of imposing retaliatory tariffs.

CANADIANS FEEL ‘UNDER ECONOMIC ATTACK,’ FRUSTRATION WITH US OVER TRUMP TARIFFS, ANNEXATION TALK: AMBASSADOR

The headquarters of the World Commerce Group (WTO) pictured on Feb. 5, 2024, in Geneva. (FABRICE COFFRINI/AFP / Getty Photographs)

“Canada claims the measures are inconsistent with the United States’ obligations under various provisions of the General Agreement on Tariffs and Trade (GATT) 1994,” the group continued.

CANADIANS FEEL ‘UNDER ECONOMIC ATTACK,’ FRUSTRATION WITH US OVER TRUMP TARIFFS, ANNEXATION TALK: AMBASSADOR

President Donald Trump

President Donald Trump speaks within the Oval Workplace on March 26, 2025. (Francis Chung/Politico/Bloomberg through Getty Photographs / Getty Photographs)

The WTO stated consultations would permit Canada and the U.S. to resolve disputes with out continuing with litigation. Nevertheless, if an answer will not be reached inside 60 days, the complainant could request adjudication by a panel.

Canada’s request for session final Thursday comes one month after initiating one other WTO criticism over the U.S. imposing 25% tariffs on metal and aluminum. 

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Mark Carney

Canada, below Mark Carney’s new management, has initiated a criticism with the WTO over Trump’s auto tariffs. (Artur Widak/NurPhoto through Getty Photographs / Getty Photographs)

China additionally filed a criticism with the WTO final Friday, the identical day they retaliated on Trump’s February tariffs by imposing a 34% levy on U.S. items. 

The U.S. responded to China’s retaliation by threatening a further levy of 34% on Chinese language imports, bringing the full tariffs to 70% on the nation.

The commerce ministry of China stated in an announcement that America’s tariffs are a “typical act of unilateralism, protectionism and economic bullying” that violate WTO guidelines.

It stays unclear how the U.S. authorities will strategy the requests for consultations. The group’s mechanism for resolving commerce disputes has been inoperative since Trump’s first time period, in response to the Wall Road Journal.

Trump additionally stated on Sunday that he’s not prepared to make offers with international locations corresponding to China except the commerce deficits are resolved.

TAGGED:CanadacarsdisputeDutiesimposinginitiatesWTO
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