Canada to impose tariffs on US, challenge at WTO

Reuters - Canada will impose retaliatory tariffs on C$16.6 billion ($12.8 billion) worth of U.S. exports and challenge U.S. steel and aluminum tariffs under the North American Free Trade Agreement and the World Trade Organization (WTO), Canadian Foreign Minister Chrystia Freeland said.

The Canadian tariffs are set to go into effect on 1 July and stay in place until the United States lifts its own measures, Freeland said, hours after the United States said it would impose tariffs on aluminum and steel imports from Canada, Mexico and the  European Union.

“The American administration has made a decision today that we deplore, and obviously is going to lead to retaliatory measures, as it must,” Prime Minister Justin Trudeau said at a news conference in Ottawa with Freeland.

“We regret that. We would much rather move together in partnership,” he said.

The Canadian government released two lists of U.S. products, proposing a 25% tariff on the first list and 10% on the second. Freeland said a 15-day consultation period would give Canadians a chance to comment on the tariffs and the products covered. The list included steel and aluminum in various forms, but also orange juice, maple syrup, whiskey, toilet paper and a wide variety of other products. It largely spares U.S. farmers. Among the few proposed agricultural targets are farm chemicals and cucumbers. 

Freeland said Canada would challenge the U.S. tariffs under both NAFTA’s Chapter 20 and the WTO’s dispute settlement process, and would work with other WTO members.