WTO finds China acted ‘inconsistently’ by imposing additional duties on certain US imports

A WTO dispute settlement panel found that China acted inconsistently with its WTO obligations by imposing additional duties on certain imports from the US. Photo: AFP

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.

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According to a WTO panel, China’s additional duties were “inconsistent” with provisions of the General Agreement on Tariffs and Trade (GATT) 1994.

An unwinnable conflict? The US-China trade war, 5 years on

An unwinnable conflict? The US-China trade war, 5 years on

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.

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.