Canada to file WTO claim against Trump tariffs

OTTAWA: Canada will file a World Trade Organisation claim against US President Donald Trump’s tariffs and also seek redress under a regional free trade deal, a Canadian official said Sunday.

“The Canadian government clearly considers these tariffs to be a violation of trade commitments that the United States has taken,” the official, speaking on condition of anonymity, told a briefing.

After weeks of threats, Trump on Saturday signed off on 25 percent tariffs on all Canadian imports except energy resources, which will be hit with a 10 per cent levy.

“We will obviously pursue the legal recourse that we believe we have through the agreements that we share with the United States,” the official said, citing the WTO and US-Mexico-Canada agreement (CUSMA) that Trump himself signed in 2018.

A review of the pact, which a Canadian official called a “gold standard agreement,” was due to be held next year.

Ottawa also unveiled on Sunday a list of 1,256 American goods it plans to target in a first round of counter tariffs worth Can$30 billion starting on Tuesday.

The list includes cosmetics, appliances, tires, tools, plastics, furniture, coffee, wines and spirits, dairy and fruits.

Officials said the Canadian tariffs do not target specifically Republican states, but aim to put pressure on lawmakers with influence over Trump, who are more likely to be Republicans.

A second round of counter tariffs could be announced in the coming weeks, when total amount of the products targeted would rise to Can$155 billion (US$106 billion).

“Our hope is that the actions we have taken already will be sufficient to persuade the United States that it has gone down the wrong path and that they will reach out to work with us on how to get back to a more normal state,” an official said.

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“If not, the prime minister and others have indicated that all options remain on the table, and there are a suite of additional measures that could be contemplated.”

Trump announces talks with Canada, Mexico

President Donald Trump said he will discuss the punishing tariffs he has levied on Canada and Mexico with both countries on Monday, after arguing that Americans may feel economic “pain” from the 25 percent duties but that it will be “worth the price.”

Speaking to reporters after he flew back to Washington Sunday evening from a weekend in Florida, Trump said he was “speaking with Prime Minister (Justin) Trudeau tomorrow morning, and I’m also speaking with Mexico tomorrow morning.”

“I don’t expect anything very dramatic,” he added.

Trump has also hit China with a 10-percent tariff in addition to levies already in place.

A fervent supporter of tariffs, Trump had always maintained that their impact would be borne by foreign exporters, without being passed on to American consumers, contradicting the opinion of a broad range of experts.

Earlier Sunday he acknowledged, in a series of messages on his Truth Social network, that Americans may feel economic “pain” from his tariffs, but argued it would be “worth the price” to secure US interests.

China, Mexico and Canada are the top three US trade partners and all have vowed to retaliate when the tariffs take effect Tuesday.