WTO finds China acted ‘inconsistently’ by imposing additional duties on certain US imports
- The dispute dates to 2018 when the Donald Trump administration imposed 25 per cent tariffs on steel imports and 10 per cent tariffs on aluminium imports
- China’s Commerce Ministry says it is studying the ruling but that ‘the root of the problem in this case lies in the unilateralism and protectionism of the US’
The World Trade Organization ruled in favour of Washington against Beijing in a tariff dispute on Wednesday, finding that China had violated international trade rules when it imposed additional duties on US goods in response to US tariffs on steel and aluminium.
According to a WTO panel, China’s additional duties were “inconsistent” with provisions of the General Agreement on Tariffs and Trade (GATT) 1994.
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The panel also recommended that “China bring its WTO inconsistent measure into conformity with its obligations” under GATT.
The dispute dates to 2018 when then-US President Donald Trump imposed a 25 per cent tariff on steel and a 10 per cent tariff on aluminium imported from a number of countries, including China.
In response, China requested WTO dispute consultations with the US and imposed tariffs on $3 billion in imported US goods.
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In December 2022, the WTO ruled that Trump’s original steel tariffs violated global trade rules. But US President Joe Biden’s administration condemned the finding and the tariffs remain in place.
On Wednesday, China’s commerce ministry said that it was studying the panel’s ruling and would follow up on the case in accordance with WTO rules.
“The root of the problem in this case lies in the unilateralism and protectionism of the US,” the ministry said, adding that China’s countermeasures were to “safeguard its legitimate rights and interests”.
“China demands that the United States immediately cancel the steel and aluminium 232 measures that violate WTO rules,” the ministry said.
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Washington hailed the ruling, saying the WTO recognised that China “illegally retaliated with sham ‘safeguard’ tariffs”, according to a statement from the office of the US Trade Representative.
“China’s decision to pursue this dispute highlights its hypocrisy by both suing the United States in the WTO and at the same time unilaterally retaliating with tariffs,”
“The panel rightly rejected China’s argument that the US Section 232 actions are safeguard measures that may be ‘rebalanced’ under WTO rules,” the statement said.
China may appeal the ruling within 60 days. If Beijing appeals, it will act as a veto because the WTO’s appellate body has not operated since 2019 – due to the US, which has blocked appointment of new judges because of its concerns about judicial activism.
Earlier this month, China called the US a “destroyer of the multilateral trading system” and called on the US to “effectively comply with WTO rules” in a report on US compliance at the organisation.
