By Olivia Le Poidevin
GENEVA (Reuters) – Canada has requested consultations with the United States on “unjustified tariffs” at the World Trade Organization, Canada’s ambassador to the WTO in Geneva said on Wednesday.
“The U.S. decision leaves us with no choice but to respond to protect Canadian interests,” Ambassador Nadia Theodore said in a statement posted on LinkedIn. A WTO spokesperson confirmed the receipt of Canada’s request for consultations.
U.S. President Donald Trump’s new 25% tariffs on imports from Canada and Mexico took effect on Tuesday, along with fresh duties on Chinese goods.
The moves, which could upend nearly $2.2 trillion in annual trade, came after Trump declared that the top three U.S. trading partners had failed to do enough to stem the flow of fentanyl and its precursor chemicals into the United States.
“Everyone plays their position. I played mine today and on behalf of the Government of Canada, requested WTO consultations with the Government of the United States in regard to its unjustified tariffs on Canada,” Theodore said.
Bilateral consultations are the first stage of formal dispute settlement. If within 60 days no solution is found, then Canada could request adjudication by the Geneva-based organisation’s Dispute Settlement Body.
Canadian Prime Minister Justin Trudeau said on Tuesday that Trump’s tariffs on Canadian imports were “a very dumb thing to do” and said Ottawa was striking back immediately. He announced immediate 25% tariffs on C$30 billion worth of U.S. imports. If need be, Canada will target another C$125 billion worth in 21 days’ time, he said.
China formally launched a dispute at the WTO on February 5 over a 10% tariff imposed by Trump on Chinese goods, in moves that raised concern about a new trade war between the world’s two largest economies.
(Reporting by Olivia Le Poidevin; Editing by Rachel More and Miranda Murray)
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