China has launched a dispute at the World Trade Organization (WTO) over U.S. tariffs imposed by former President Donald Trump. The WTO, headquartered in Geneva, confirmed the case, citing China’s concerns that the tariffs violate U.S. commitments under WTO agreements, Reuters reports.
Trump’s Tariff Policy Sparks Trade Tensions
Over the weekend, Trump ordered 10% tariffs on Chinese exports while also targeting Mexico and Canada to curb the flow of fentanyl and illegal immigration. However, he later suspended tariffs on Canada and Mexico, leaving China as the primary target of his trade measures.
China’s Response and WTO Complaint
Beijing has vowed to challenge the tariffs at the WTO, stating that they appear to be inconsistent with U.S. obligations under global trade rules.
“China reserves the right to take additional measures during consultations and in a potential request for a dispute panel,” the Chinese government stated.
The move signals escalating trade tensions between the world’s two largest economies, as China considers further retaliatory actions.
Potential Economic Impact
This latest trade dispute comes amid broader concerns that U.S. protectionist policies could weaken its global trade position, potentially benefiting China in the long run. The dispute resolution process at the WTO could take months or even years, prolonging uncertainty in global markets.
