China Challenges Canada's Steel and Aluminum Tariffs at WTO

China has initiated dispute consultations at the World Trade Organization over Canadian tariffs and quotas on steel and aluminum, alleging that the measures unfairly target imports from non-free trade partners, including China. Canada's response aims to protect its domestic steel industry from China's overcapacity and non-market behavior.

On Wednesday, China requested dispute consultations at the World Trade Organization concerning Canadian surtaxes and quotas imposed on steel and aluminum goods, the WTO disclosed.

The measures in contention involve a surtax structured as tariff-rate quotas on certain steel imports from countries without free trade agreements with Canada, including China, according to a WTO notice. Additionally, China is challenging a surtax on goods containing steel or aluminum originating from China.

Prime Minister Mark Carney, aiming to safeguard Canada's steel industry, announced last month plans to implement 25% tariffs on steel imports with components sourced from China by the end of July. Trade Minister Maninder Sidhu's spokesman, Huzaif Qaisar, stated, "These measures respond directly to China's excessive capacity and non-market activities compromising Canada's steel sector and job security."

(With inputs from agencies.)