Canadian ambassador calls tariffs "unjustified"
Canada has requested consultations with the United States at the World Trade Organization (WTO) over what it calls "unjustified tariffs," 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.
United States President Donald Trump's new 25% tariffs on Canadian and Mexican imports took effect on Tuesday.
The moves came after Trump declared the top three U.S. trading partners failed to do enough to stop the flow of fentanyl into the states. The moves could upend about $2.2 trillion in annual trade.
“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.
Under WTO rules, bilateral consultations are the first step in formal dispute resolution. If no agreement is reached within 60 days, Canada can escalate the case to the WTO’s Dispute Settlement Body for adjudication.
Prime Minister Justin Trudeau said the tariffs on Canadian imports were "a very dumb thing to do." He announced 25% tariffs on C$30 billion worth of U.S. imports and another C$125 billion worth in 21 days if needed.
Meanwhile, China launched a WTO dispute on February 5 over a 10% tariff imposed by Trump on Chinese goods, fueling concerns of an escalating trade war between the world’s two largest economies.
