The White House on Thursday confirmed that it is closely monitoring a complaint filed by China with the World Trade Organization (WTO) over new U.S. tariffs, Voice of America reports.
China accuses the United States of using “unfounded and false allegations” regarding its role in the fentanyl trade to impose trade restrictions.
The complaint follows the U.S. decision to raise tariffs on Chinese goods by 10%, a move President Donald Trump said was aimed at curbing the flow of fentanyl opioids and precursor chemicals from China.
In response, Beijing announced countermeasures, including a 15% tariff on coal and natural gas imports, and a 10% tariff on petroleum, agricultural equipment, high-emission vehicles, and pickup trucks.
Additionally, China imposed immediate restrictions on exports of certain critical minerals and launched an antitrust investigation into U.S. tech giant Google.
In its WTO filing, China described the U.S. tariff measures as “discriminatory and protectionist,” arguing that they violate international trade regulations. Beijing has formally requested consultations with Washington, initiating a legal process within the WTO’s dispute settlement mechanism.
WTO unlikely to sanction US – experts say
However, trade analysts suggest that China’s WTO complaint is more symbolic than effective. The WTO’s Appellate Body, responsible for adjudicating trade disputes, has been largely dysfunctional since the Trump administration blocked the appointment of new appellate judges in 2019, citing concerns over judicial overreach.
- The Biden administration has continued this policy, leaving the WTO with limited power to enforce rulings against the United States.
“China understands that the WTO is unlikely to exert significant pressure on the U.S. because Washington can effectively block any legal proceedings,” said Jeffrey Schott, a senior fellow at the Peterson Institute for International Economics.
- Despite the trade tensions, Schott noted that China’s response has been measured, suggesting a preference for stability rather than escalating the dispute further.
“The Chinese reaction has been moderate, indicating that they will act tit for tat against U.S. trade policies but not escalate beyond that,” he explained. This approach mirrors previous trade disputes during the Trump administration, where initial retaliatory measures were followed by negotiations that eventually led to trade agreements.
- From the U.S. perspective, the 10% tariffs imposed on Chinese goods remain significantly lower than the 60% tariffs that Trump had proposed during his presidential campaign. This suggests that while trade tensions persist, both sides are still treading cautiously to avoid a full-scale economic confrontation.
As China moves forward with its complaint, the White House remains watchful, though officials have yet to indicate any shift in U.S. trade policy. With the WTO’s dispute resolution process in limbo and bilateral tensions running high, the outcome of this latest trade clash remains uncertain.
Key Highlights:
- The White House is monitoring China’s complaint to the WTO over U.S. tariffs.
- China claims the U.S. has made “unfounded and false allegations” to justify the tariffs.
- Beijing has retaliated with tariffs on U.S. goods and restrictions on critical mineral exports.
- Analysts believe China’s WTO challenge is largely symbolic due to the paralysis of the WTO’s Appellate Body.
