Trump Increases Tariffs on Steel and Aluminum, Canada Files Complaint with WTO

Canada has formally requested consultations with the United States at the World Trade Organization (WTO) regarding the tariffs imposed on certain steel and aluminum products from Canada.

According to a statement from the WTO, Canada believes that these measures, including the termination of the exemption granted to Canada from additional tariffs on certain steel and aluminum products and the increase in aluminum tariffs, are inconsistent with the U.S.’s obligations under the General Agreement on Tariffs and Trade (GATT) of 1994.

U.S. President Donald Trump signed an executive order on February 10 to raise tariffs on aluminum from 10% to 25%, aligning them with the current tariff rates on steel. He also decided to eliminate the quota exemptions and exceptions granted for Canadian steel and aluminum products. These measures were set to take effect on March 12.

On March 11, Trump announced a plan to double the tariffs on Canadian steel and aluminum imports to 50% in response to tariffs on electricity imports from Ontario, Canada. However, later that day, Trump backtracked on his plan after Ontario canceled the electricity export tariff affecting three U.S. states.