Canada files WTO complaint over US tariffs

Shafaq News/ Canada initiated a dispute with the US at the World Trade Organization (WTO) over the 25% tariff on Canadian automobiles and auto parts.

The dispute escalates following US tariffs on Canadian steel and aluminum, with Canadian Prime Minister Mark Carney warning of further US duties on pharmaceuticals, lumber, and semiconductors.

Carney announced that Canada would mirror the US tariffs by imposing a 25% duty on US-imported vehicles, adding that his country’s goal is to “minimize the impact on Canadians while ensuring the US feels the consequences of its actions,” with retaliatory tariffs of CA$30 billion (21 billion USD) remaining in place, affecting US goods like orange juice, motorcycles, and certain paper products.

The automotive sector is critical to Canada, as it is the country's second-largest export, employing 125,000 Canadians directly and another 500,000 in related industries. The tariffs have already begun to affect the industry, with automaker Stellantis announcing a two-week shutdown of its Windsor, Ontario assembly plant, impacting 3,600 workers.

In response to the economic fallout, Carney unveiled a CA$2 billion (1.4 billion USD) “strategic response fund” to protect Canadian auto jobs.

Yesterday, Kevin Hassett, head of the US National Economic Council, revealed in an interview with ABC News that more than 50 countries have recently reached out to the White House to initiate trade discussions.