China Opens WTO Dispute on 10% US Tariff
China opened a dispute at the World Trade Organization on Feb. 5 to challenge the new 10% tariff imposed by the U.S. on all goods from China, claiming that the measure violates the General Agreement on Tariffs and Trade. China said that not only do the duties violate the U.S. government's "Schedule of Concessions and Commitments," they're also "discriminatory and protectionist in nature."
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President Donald Trump imposed the tariffs Feb. 4 while also eliminating the availability of duty drawback and the de minimis threshold on goods from China (see 2502030034). The president invoked the International Emergency Economic Powers Act as the legal basis for the tariffs, claiming that the duties are needed to address the influx of fentanyl from China.
In its request for consultations at the WTO, China alleged that the tariffs violate Articles I and II of the GATT. The duties cut against Article I, since they fail to "immediately and unconditionally" offer "advantage, favour, privilege or immunity" to China by the U.S. with respect to "customs duties and charges of any kind," China said.
China said the tariffs also violate Article II, since they are imposed in excess of the U.S.'s tariff concessions and commitments to the WTO and its members. It said the U.S. fails to treat Chinese products no less favorably than products from other WTO members.
China added that the duties "appear to nullify or impair benefits accruing to China, directly or indirectly, under the cited agreements." China also reserved the right to make additional claims against the tariffs.