Canada moves the WTO against Trump's 25% tariff on Motor Input | Today news
Canada has moved the World Trade Organization (WTO) at the sharp tariff of 25 percent on car imports imposed by US President Donald Trump. “Canada has requested the WTO dispute consultations with the United States regarding US measures that impose a 25 percent duty on cars and auto parts from Canada,” the WTO said on Monday. The complaint was filed on Thursday, the day when the additional levy came into effect for all cars and car parts not manufactured in the US, but it was only distributed to WTO members on Monday. ‘Inconsistent’ rates According to Canada’s complaint, the rates ‘were contrary to the obligations of the United States’ in terms of international trade laws. In retaliation, Canada, which is one of America’s largest trading partners, said on Thursday that it would impose a 25 percent rate on tens of thousands of vehicles imported from the United States. Since coming to power in January, Trump has unleashed a barrage of rates. Last week, he hit countries and goods around the world with wide rates and sent global stock markets. But Canada has been largely spared, as the US has given an exemption to goods that meet the US-Canada-Mexico free trade agreement, covering most products. Canada stands for rates on steel, aluminum and other products, in addition to the charges on cars. The rates on cars and auto parts are expected to be especially painful in North America, where those markets are very integrated. The consultations of the global trading body give the parties the opportunity to resolve the dispute without going on with litigation. After 60 days, if consultations do not resolve the matter, the complainant can be judged by a panel. Due to Trump’s 25 percent tariff on cars imported in the US, the automotive industry was hit hard, which forced some manufacturers to temporarily stop production or offer a big discount.