China and Canada Initiate WTO Dispute Complaint Regarding US Tariff Measures

PRESS ROOM

7 Mar

Written By Debbie Mckeegan

China and Canada have requested WTO dispute consultations with the United States in regard to new tariff measures applied by the United States on goods originating in China and Canada.

The World Trade Organization chief urged America's global trading partners on Friday to listen to U.S. concerns about tariffs and engage in dialogue with Washington rather than embrace tit-for-tat measures on tariffs.

WTO Director General Ngozi Okonjo-Iweala said it's important for trade partners not to panic but to embrace dialogue in reaction to President Donald Trump’s threats in recent days to impose tariffs on close trade partners.

Canada Initiates WTO Dispute Complaint Regarding US Tariff Measures

Canada has requested WTO dispute consultations with the United States regarding new tariff measures applied by the United States on goods originating in Canada.

The request was circulated to WTO members on 5 March.

Canada claims the announced additional US ad valorem duties of 25 per cent on all non-energy goods and 10 per cent on energy goods originating in Canada are inconsistent with various provisions of the General Agreement on Tariffs and Trade (GATT) 1994 as well as the WTO's Trade Facilitation Agreement

In a post on LinkedIn, Nadia Theodore, Canada’s ambassador to the WTO, said: “The US decision leaves us with no choice but to respond to protect Canadian interests.”

However, within hours, the USA caved in, as US President Donald Trump agreed to suspend levies on Canadian exports covered by a North American trade agreement.

“Canada will not proceed with the second wave of tariffs on $125B of US products until April 2nd, while we continue to work for the removal of all tariffs,” LeBlanc, who is leading Canada’s trade negotiations with its neighbor, posted on X.

China Also Goes To The WTO

China recently submitted a revised request at the World Trade Organisation (WTO) for dispute settlement consultations with the United States to address new US tariff measures applied on goods originating in China.

“The United States issued the Executive Order of 3 March 2025, which amends the Executive Order of 1 February 2025 and increases the additional ad valorem tariffs imposed on all imported products originating in China from 10 per cent to 20 per cent. The measures at issue are applied to products of Chinese origin only and are in excess of the United States' bound rates in its Schedule of Concessions and Commitments annexed to the GATT 1994. The measures at issue not only violate WTO rules, but are discriminatory and protectionist in nature,” China said in its request.

The Revised Request Was Circulated To WTO Members On March 5.

Chinese Foreign Ministry Spokesperson Lin Jian Denounced US Defence Secretary Pete Hegseth’s Statement That The US Is “Prepared” To Go To War With China Following Beijing’s Warning Over Escalating Trade Tensions.

China sharply criticised higher tariffs imposed by the US under the Trump administration, with Chinese Foreign Ministry spokesperson Lin Jian denouncing the move as a war that "should not be fought and cannot be won."

Chinese Commerce Minister Wang Wentao echoed the sentiment: "Coercion and threats will not work on China, nor will they scare China. China’s determination to defend its own interests is unswerving," Wang said, adding that “there are no winners in a trade war.”

The Trump administration has raised tariffs on imports from China twice since taking office in January. China has hit back with duties and other restrictions on American goods and companies. Wang said China expects mutual respect in its dealings with other countries.

“If the American side goes further down this wrong path, we will continue to respond in kind,” he said. ”We will fight to the end.”