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China Challenges Canada’s Steel and Aluminum Tariffs at WTO

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China 21 Aug 2025 11:45 AM IST Economic Times

China Challenges Canada’s Steel and Aluminum Tariffs at WTO

China has formally filed a complaint with the World Trade Organization (WTO) against Canada, disputing its tariffs and import quotas on steel and aluminum products. The move escalates ongoing trade tensions between the two countries.

At the center of the dispute are Canada’s tariff-rate quotas, which limit steel imports from nations without free trade agreements—such as China—and a 25% surtax on products containing Chinese steel or aluminum. Beijing argues these measures are discriminatory and violate WTO trade rules.

Canada introduced the surtax earlier this year, citing national security and the need to protect domestic industry. China, however, contends the actions are protectionist and have disrupted fair trade practices.

This isn’t the first clash between the two nations. Earlier this year, China imposed retaliatory duties on Canadian agricultural exports, signaling deepening friction in their trade relationship.

The WTO dispute consultation is the first step in the formal process. If talks fail, the case could proceed to a dispute panel, further straining Canada-China economic ties.