Canada announced on Sunday that it will file a claim against the United States at the World Trade Organisation (WTO) in response to President Donald Trump’s recently imposed tariffs. Additionally, Ottawa will seek redress through the US-Mexico-Canada Agreement (CUSMA), the trade deal signed by Trump in 2018. A Canadian official, speaking anonymously, stated that the Canadian government views the tariffs as a breach of trade commitments made by the United States.
On Saturday, after weeks of warnings, Trump implemented tariffs of 25 percent on most Canadian imports, excluding energy resources, which will face a 10 percent levy. In response, Canada plans to pursue legal avenues under both the WTO and CUSMA, with the official describing the latter as a gold standard agreement, which was due for a review in the coming year.
In a retaliatory move, Ottawa revealed a list of 1,256 American goods, including items such as cosmetics, appliances, tyres, tools, and coffee, that will be targeted in an initial round of counter-tariffs valued at Can$30 billion, effective from Tuesday. While these tariffs do not specifically target Republican states, officials stated that they are designed to put pressure on lawmakers who are more likely to be Republican and have sway over Trump’s decisions.
A second round of tariffs could follow in the coming weeks, raising the total value of targeted American goods to Can$155 billion (US$106 billion). Canadian officials hope the measures will convince the United States to reconsider its stance, but warned that if the situation does not improve, further actions could be considered. “All options remain on the table,” an official said, indicating that additional measures may be pursued if necessary.