Canada challenges US steel, aluminum tariffs at World Trade Organisation

Mary Ng, minister of export promotion, international trade and economic development, said that Canada was seeking formal consultations with the US regarding tariffs on steel and aluminum

Ottawa: Canada has taken official steps by requesting consultations with the World Trade Organisation (WTO) to dispute US import duties on steel and aluminum products from Canada, according to a statement issued by the trade organisation.

The request was circulated to WTO members on Thursday, said the statement. Canada argued that US measures, which ceased its exemption and increased duties, contravene US obligations under GATT 1994, Xinhua news agency reported.

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Mary Ng, minister of export promotion, international trade and economic development, said on Wednesday that Canada was seeking formal consultations with the US regarding tariffs on steel and aluminum.

“Canada is deeply disappointed that the US has chosen to reimpose these unjustified tariffs that hurt workers and businesses on both sides of the border,” Ng said in the statement. “These unilateral tariffs violate the United States‘ obligations under both the Canada-United States-Mexico Agreement (CUSMA) and the WTO Agreement.”

Francois-Philippe Champagne, minister of innovation, science and industry, made a statement on Thursday that Canadian steel and aluminum form the basis of North America’s critical infrastructure and manufacturing base while supporting vital US industries, including defence, shipbuilding and automotive. The industry minister said he directed Industry Canada to prioritise funding of projects that use predominantly Canadian steel and aluminum.

Canada announced on Wednesday reciprocal tariffs on US steel and aluminum imports worth 29.8 billion Canadian dollars ($20.7 billion). This trade move came in response to US President Donald Trump’s 25 per cent tariffs on all steel and aluminum imports coming into effect on the same day.

On February 10, US President Donald Trump signed proclamations to raise tariffs on aluminum from 10 per cent to 25 per cent, aligning them with the existing tariff rate for steel. He also decided to eliminate duty-free quotas, exemptions, and exclusions for steel and aluminum tariffs. These measures were set to take effect on March 12.

On March 11, Trump announced a plan to double tariffs on Canadian steel and aluminum imports to 50 per cent in response to tariffs on electricity exports from the Canadian province of Ontario. But the plan was reversed later that day after Ontario dropped the electricity export tariffs affecting three US States.