Canada has officially filed a complaint with the World Trade Organization (WTO) over tariffs imposed by the Trump administration on auto imports, the organization announced on Monday.
In a statement, the WTO confirmed that Canada has requested dispute settlement consultations with the United States concerning the imposition of a 25 percent tariff on automobiles and auto parts from Canada.
The complaint was filed on April 3 and has been circulated among WTO member countries.
The move comes as tensions between Canada and the United States rise over trade policies that could impact billions of dollars in cross-border commerce. Canada argues that the tariffs are unjustified and violate international trade agreements.
The dispute centers on the 25 percent duty applied to Canadian vehicles and automotive parts, a measure that Ottawa claims damages its automotive industry and disrupts long-standing trade relationships.
Under WTO rules, requesting consultations is the first step in the formal dispute resolution process. If the two countries cannot resolve the issue through consultations, Canada could request the establishment of a dispute panel to formally adjudicate the matter.
This complaint adds another layer of complexity to US-Canada trade relations, which have already been strained by disagreements over other sectors including agriculture, lumber, and steel.