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- China -

China Files WTO Dispute Against Canada Over Steel and Aluminum Surtaxes

China launched a World Trade Organization dispute against Canada over tariff-rate quotas and surtaxes affecting steel and aluminum products. According to the WTO notice referenced by Reuters, Beijing is challenging two elements: Canada’s tariff-rate quotas applied to certain steel imports from countries without free-trade agreements with Canada (which includes China), and additional surtaxes on goods containing steel or aluminum originating from China. The case follows earlier Chinese complaints about Ottawa’s import curbs and signals an escalation in bilateral trade tensions related to metals. The filing places the dispute into the WTO’s consultation phase, after which a panel can be requested if no settlement is reached. The measures China contests were introduced as part of Canada’s efforts to manage import surges and protect its domestic industry. Today’s move adds a fresh front to global metals trade frictions that have intensified in 2025 amid broader tariff expansions by multiple governments. The next procedural steps will involve scheduling consultations between the two countries under WTO rules; if those fail, China could request a panel to rule on the compatibility of Canada’s measures with WTO obligations.

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