Canada has requested negotiations with the United States over “unfounded tariffs” at the World Trade Organization (WTO), Canada’s ambassador to the WTO said in Geneva on Wednesday.
“This U.S. decision leaves us no choice but to respond to protect Canada’s interests,” Ambassador Nadia Theodore said in a statement posted on LinkedIn. A WTO spokesperson confirmed Canada’s request for negotiations.
New 25% tariffs on imports from Canada and Mexico announced by U.S. President Donald Trump took effect on Tuesday, along with additional duties on goods from China.
The move could disrupt nearly $2.2 trillion in annual trade, coming after Trump claimed that three of the U.S.’s major trading partners had failed to do enough to stop fentanyl and precursor chemicals from entering the United States.
“Everybody is playing their part. Today, I have played my part by requesting WTO negotiations with the U.S. government over the unfounded tariffs on Canada,” Theodore said.
Bilateral talks are the first stage in a formal dispute resolution. If no resolution is reached within 60 days, Canada can seek arbitration at the WTO’s Dispute Settlement Body based in Geneva.
Canadian Prime Minister Justin Trudeau on Tuesday called the US tariffs on Canadian imports “deeply inappropriate” and announced immediate retaliation. Ottawa is imposing 25% tariffs on C$30 billion worth of US imports. If necessary, Canada will target an additional C$125 billion within 21 days, he said.
China formally launched a dispute at the WTO on February 5 over Trump’s 10% tariffs on Chinese goods, a move that has raised concerns about the possibility of a new trade war between the world’s two largest economies.
