Canada has ramped up its trade dispute with the United States by formally complaining at the World Trade Organization (WTO) about President Donald Trump’s recent tariff hikes. Later Tuesday, Canadian ambassador to the WTO Nadia Theodore announced on LinkedIn that Canada had no choice but to go to WTO, after the US left Canada with no choice on the ruling.
Theodore described the tariffs as ‘unjustified and harmful’ to Canadian industries, in her formal request for consultations with the US. Following China in a similar trade dispute, the US and Canada decided to challenge those levies too and took further steps in demanding that Canada remove all regulatory barriers banning some Chinese products.
A news agency quoted a WTO official as saying: Canada has started dispute proceedings with the US over the additional tariffs, which is in keeping with wider international angst over recent actions taken by Washington.
When he returned to office on January 20, Donald Trump had first said he would impose a 25 percent tariff on imports from Canada and Mexico and had since placed the decision on hold. But he moved ahead with the tariffs on Tuesday, arguing that progress has been lacking — particularly regarding illegal immigration and drug trafficking — to patrol the southern border. Thereafter, Canada retaliated by introducing measures that Trump threatened to take action against.
Secretary of US Commerce Howard Lutnick later suggested there may be a way out of the deadlocked talks, saying he thought Trump would ‘do something something out’ with Canada and Mexico. With China tensions also rising, Trump also signed an order Monday that would double an existing 10 percent tariff on Chinese goods to 20 percent and pile on duties to other Chinese imports.
Latest developments show that increased global concerns over the US trade policies, as Canada, China, and other countries are set to counter the US measures’ economic effect. Now the dispute will be the subject of negotiations and legal proceedings at the WTO to decide its course afterwards.
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