US tax policy: Canada files WTO complaint against US tariffs

Kathmandu – Canada has filed a complaint with the World Trade Organization (WTO) over US President Donald Trump’s steep tariffs on car imports.

“Canada has requested dispute consultations at the WTO regarding the US move to impose a 25 percent tariff on cars and car accessories shipped from Canada to the US,” the organization said. The request was filed last Thursday, the day the additional tariffs on all cars and car parts not manufactured in the United States were implemented, but was only made known to WTO members on Monday.

The complaint accuses the Canadian government of imposing taxes “inconsistent with the obligations of the United States” under international trade laws. Canada said on Thursday it would impose a 25 percent tariff on tens of thousands of vehicles imported from the US. Since taking office in January, Trump has announced tariff hikes on a range of goods imported into the US, which have hit prices around the world and affected countries and goods around the world in the past week.

Canada was largely spared the global tariffs announced by Trump last Wednesday, as Washington exempted most products covered by the US-Canada-Mexico Free Trade Agreement.

Canada, one of the U.S.’s largest trading partners, still faces tariffs on steel, aluminum and other products. The tax hikes on cars and other automotive parts are expected to be particularly painful in North America, where those markets are heavily integrated.

WTO consultations provide an opportunity for the parties to discuss the matter and find a satisfactory solution without proceeding with the case. Canada has filed a separate complaint with the WTO regarding Trump’s previous tax hike tactics. Agency