Canada moves WTO against Trump’s 25% tariff on auto imports

Canada has moved the World Trade Organization (WTO) against the steep 25 percent tariff on auto imports imposed by US President Donald Trump.

"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 said on Monday.

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

‘Inconsistent’ Tariffs

According to Canada’s complaint, the tariffs were "inconsistent with United States' obligations" under international trade laws.

In retaliation, Canada, which is one of America's largest trading partners, had said on Thursday that it would impose a 25 percent tariff on tens of thousands of vehicles imported from the United States.

Since coming to power in January, Trump has unleashed a barrage of tariffs.

Last week, he hit countries and goods around the world with wide ranging tariffs, sending global stock markets crashing.

But, Canada was largely spared, as the US granted an exemption to goods compliant with the US-Canada-Mexico free trade agreement, which covers most products.

Canada is 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.

The global trade body’s consultations provides the parties an opportunity to resolve the dispute without proceeding further with litigation.

After 60 days, if consultations fail to resolve the matter, the complainant can request adjudication by a panel.

Due to Trump’s 25 percent tariff on cars imported into the US, the autos industry has been hit hard, forcing some manufacturers to temporarily halt production or offer big discounts.