Geneva: Canada has formally launched a World Trade Organization (WTO) complaint against the United States over the 25 percent tariff imposed on automobile and auto parts imports by President Donald Trump’s administration.

The WTO confirmed on Monday that Canada submitted a request for dispute consultations with the US, challenging the legality of the new duties under international trade rules. The request was filed last Thursday, coinciding with the day the tariffs took effect on non-US manufactured vehicles and parts.

In its complaint, Canada argues the tariffs are inconsistent with US obligations under WTO agreements and international trade laws. In response, Canada also imposed reciprocal 25 percent tariffs on tens of thousands of US-made vehicles.

The move marks another escalation in trade tensions between the two longtime allies. Although Canada had been granted some exemptions under the US-Canada-Mexico Agreement (USMCA) for certain goods, it continues to face steep tariffs on steel, aluminum, and now automobiles.

Trade analysts warn that the automotive tariffs could be especially disruptive, given the highly integrated North American auto industry.

WTO consultations are the first step in resolving trade disputes. If the two sides fail to reach a settlement within 60 days, Canada can request a WTO panel to adjudicate the case.

This is not Canada’s first WTO challenge against Trump’s tariff policies; it has previously contested other duties imposed by the administration, highlighting growing trade friction between the neighboring countries.