Canada has initiated a dispute with the United States at the World Trade Organization (WTO) over a 25% tariff imposed by the US on automobiles and auto parts imported from Canada.
The complaint, filed on April 3, 2025, and circulated to WTO members on April 7, challenges the legality of these tariffs under international trade laws, specifically provisions of the General Agreement on Tariffs and Trade (GATT) 1994.
WTO consultations are the first step in resolving such disputes, offering both parties an opportunity to negotiate a solution within 60 days.
If no resolution is reached, Canada can request a formal adjudication by a WTO panel.
In response to the tariffs imposed by US president Donald Trump, Canada has announced its own retaliatory tariffs of 25% on vehicles imported from the US.