Canada Files WTO Dispute Against U.S. Over Steel and Aluminum Tariffs

Canada has formally initiated dispute settlement proceedings at the World Trade Organization (WTO) against the United States concerning additional import duties imposed on Canadian steel and aluminum products. The request for WTO consultations was circulated to members on March 13, following the termination of Canada’s exemption from these tariffs.

The U.S. initially imposed additional duties of 10% on aluminum and 25% on steel imports in March 2018 under Section 232 of the Trade Expansion Act of 1962, citing national security concerns. While Canada was exempt from these duties since May 2019, the exemption was revoked on February 10, 2025, with the new tariffs taking effect on March 12, 2025. Concurrently, the U.S. raised aluminum duties from 10% to 25%.

In its request for consultations, Canada asserts that the U.S. measures violate obligations under the General Agreement on Tariffs and Trade (GATT) 1994, particularly Articles II:1(a) and II:1(b), which mandate that WTO members adhere to scheduled tariff commitments. Canada contends that the tariffs unfairly restrict market access and undermine previously negotiated trade benefits.

WTO consultations serve as the first step in the dispute resolution process. If the two parties fail to reach a mutually acceptable solution, Canada may request the establishment of a WTO dispute settlement panel.

Further details and the official request for consultations are available in WTO document WT/DS635/1.