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Canada files WTO complaint against US tax hike, other countries also joining the case

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Kathmandu. Canada has filed a complaint with the World Trade Organization (WTO) over US President Donald Trump’s steep tariffs on car imports.

“Canada has requested WTO dispute consultations regarding the US move to impose a 25 percent tariff on cars and car accessories shipped from Canada to the US,” the organization said.

The request was filed last Thursday, the day the additional tariffs were implemented on all cars and car parts not manufactured in the United States, but was only made known to WTO members on Monday. The complaint alleges that the Canadian government has imposed tariffs that are “inconsistent with the United States’ obligations” under international trade law.

Canada said Thursday it would impose a 25 percent tariff on tens of thousands of vehicles imported from the United States. Since taking office in January, Trump has announced tariffs on a range of goods imported into the United States, which have hit countries and goods around the world over the past week.

Canada was largely spared from the global tariffs announced by Trump last Wednesday because Washington had exempted most products covered by the U.S.-Canada-Mexico Free Trade Agreement. Canada is also one of the United States’ largest trading partners.

Canada still faces tariffs on steel, aluminum and other products. The tax hike on cars and vehicle parts is expected to be particularly painful in North America, where those markets are heavily integrated. The WTO consultations provide the parties with an opportunity to discuss the issue and find a satisfactory solution without going ahead with the case. Canada has filed a separate complaint with the WTO over Trump’s previous tariff maneuvers. US tax policy is having a serious impact on economies around the world.

Stock markets around the world have fallen due to the impact of Trump’s tax hikes.

 

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