WTO Hears Chinese Dispute Request for Canadian Tariffs on EVs, Steel Products
The World Trade Organization's Dispute Settlement Body on May 23 heard China's first request to establish a dispute panel on Canada's surtax on Chinese products, including electric vehicles and steel and aluminum products, the WTO said. Canada said it's not ready to accept the panel at this time, punting the issue to the next DSB meeting, which is scheduled for June 23.
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China first requested dispute consultations with Canada at the WTO last year concerning Canadian tariffs on Chinese products, including EVs and aluminum products (see 2409110031). The duties include a 100% tariff on Chinese EVs and 25% duty on steel and aluminum products.
China alleged that the measures violate the most favored nation principle in the General Agreement on Tariffs and Trade (GATT) 1994 and Canada's GATT schedule of customs duty concessions and commitments.
Beijing's WTO dispute also took issue with measures on "certain solar products, critical minerals, semiconductors, permanent magnets and natural graphite imported from China." Canada said it's "unfortunate" China included claims related to these products, since there are no tariffs on these products.
Both parties said consultations at the WTO held in April 2025 fell through, prompting China's first request for a dispute panel. The DSB will convene a dispute panel at its next meeting should China request it.