Canada has formally raised a complaint with the World Trade Organization over the tariff measures imposed by the US.
In a statement, the WTO confirmed Canada’s request for “dispute consultations” with the US.
In a post on LinkedIn, Nadia Theodore, Canada’s ambassador to the WTO, said: “The US decision leaves us with no choice but to respond to protect Canadian interests.”
According to the WTO, Canada argues the newly announced US ad valorem duties of 25% on the country’s non-energy goods and 10% on energy are “inconsistent with various provisions” of the General Agreement on Tariffs and Trade (GATT) 1994 and the WTO’s Trade Facilitation Agreement.
Consultations allow parties to seek a resolution without litigation. If unresolved after 60 days, the complainant may request panel adjudication.
The US tariffs came into effect on Tuesday (4 March) after being suspended by President Trump for a month following talks with Justin Trudeau, Canada’s Prime Minister.
In response, Canada introduced a 25% tariff on $155bn worth of US goods, starting with $30bn immediately and the remaining $125bn in 21 days.
The list of affected goods included food products such as meat, dairy and citrus fruits, as well as beverages such as coffee, tea, and spirits.
Theodore said: “This was not the outcome we hoped for. We urge the US administration to reconsider their tariffs. But until then, elbows up.”
Several Canadian provinces have reacted by pulling US alcohol from their shelves.
Ontario premier Doug Ford had threatened to ban US alcohol products from retailers in the province in January should tariffs come into effect.
Speaking at a press conference on Tuesday, Ford said: “It’s a tough day for Ontario and for Canada, just as much as it’s a tough day for the United States.”
He added: “This is an enormous hit to American producers”.
Quebec’s ’s government-run alcohol retailer Société des alcools du Québec (SAQ) has also started removing US alcohol products.
Dr Sylvain Charlebois, a professor and senior director at Dalhousie University in Canada, said there has been “a shift away from American products” in the country since Trump’s initial tariffs announcement last month.
He suggested the circa 7% decline in sales “is opening the door for imports from other countries or even more local alternatives”.
Charlebois added: “This could create opportunities but only if supply chains can adjust quickly enough to meet demand. For most, this is about managing uncertainty rather than capitalising on opportunity. The challenge is passing on costs without losing customers, and that’s a fine balance.”
