Canada has formally requested consultations with the United States under the World Trade Organization (WTO) framework regarding new U.S. tariff measures imposed on goods originating from Canada. The request, circulated to WTO members on March 5, 2025, signals Canada’s concern over these tariffs and further escalation in trade wars.
The U.S. has introduced additional ad valorem duties of 25% on non-energy goods and 10% on energy goods imported from Canada. Canada argues that these measures violate several provisions of the General Agreement on Tariffs and Trade (GATT) 1994 and the WTO’s Trade Facilitation Agreement.
This request marks the official start of a dispute under the WTO dispute resolution process. The consultation phase provides an opportunity for the involved parties to engage in discussions to resolve the issue amicably, without resorting to further litigation. If the consultations fail to yield a resolution within 60 days, Canada may request the establishment of a panel to adjudicate the dispute.
In related news, China has also submitted a revised request for consultations with the United States regarding new U.S. tariff measures on Chinese goods. The revised request, circulated to WTO members on March 5, includes an addendum to China’s initial request filed on February 4, 2025 (DS633). This addendum addresses the increase in U.S. ad valorem duties on all Chinese-origin goods, raising the tariff from 10% to 20%.
Both cases underscore growing tensions in global trade relations as countries seek to challenge tariff measures they believe violate WTO commitments.
