At a World Trade Organisation (WTO) Agriculture Committee meeting on March 24, members expressed concerns over recent tariff hikes by the U.S. government, a Geneva trade official had said. Canada and the United Kingdom criticised the Donald Trump administration’s tariff hikes for undermining its commitments and disrupting the balance of concessions agreed upon by members, calling for a swift resolution to the trade dispute. Last month, President Trump announced a 25 per cent additional tariff on imports from Canada and Mexico and a 10 per cent additional tariff on imports from China. The Trump administration said the move was aimed at holding these countries accountable to their promises of halting illegal immigration and stopping poisonous fentanyl and other drugs from flowing into America. At the WTO Agriculture Committee meeting this week, Canada criticised that the U.S.'s implementation of 25 per cent tariffs on agricultural imports from Canada and Mexico violates WTO market access obligations and negatively impacts over $35 billion in annual agricultural imports. Canada asked whether the U.S. has considered the severe effects of these tariffs on the multilateral trading system, as well as on North American and global food security, economic growth, and inflation, particularly given the highly integrated nature of North American supply chains. The U.S. responded by noting that, as this matter is currently under dispute settlement, it would be inappropriate to comment on its merits. According to the trade official, the European Union then took the floor, expressing concern over the recent U.S. announcement regarding tariff measures, stating the EU believes the announced measures are both ¨unjustified and economically counterproductive. “The EU argued that these measures not only tax U.S. citizens but also raise business costs and fuel inflation, ultimately harming global trade and increasing uncertainty,” the trade official said. Canada thanked the EU for its support and emphasized the negative impact of the U.S. tariff actions. Canada noted that these announcements have caused significant uncertainty and instability and highlighted the disruption to supply chains, the adverse effects on farmers and agribusinesses, and the undermining of WTO commitments. Canada also stressed that it has requested WTO dispute consultations for a swift resolution. Recently, the governments of Canada, Mexico, and China have pledged to implement retaliatory measures, which could disrupt global trade, heighten economic uncertainty, and drive shifts in trade alliances.
