Beijing, February 6, 2025 – China has officially approached the World Trade Organization (WTO) to challenge the latest tariff measures imposed by the United States on goods originating from China.
The complaint, circulated among WTO members on February 5, 2025, asserts that the additional 10% tariff imposed by the US violates international trade rules and unfairly targets Chinese products.
According to the Chinese Ministry of Commerce, these tariff measures are inconsistent with the US’s most-favored-nation obligations under Article I:1 of the General Agreement on Tariffs and Trade (GATT) 1994. Additionally, China claims that these tariffs exceed the US’s bound commitments under Article II:1(a) of GATT 1994, making them unlawful under WTO regulations.
Background of the Tariff Dispute
On February 1, 2025, the United States issued an Executive Order implementing a 10% tariff on all China-origin goods under Section 1702(a)(1)(B) of the International Emergency Economic Powers Act (IEEPA). The measure was introduced as part of an effort to address an alleged “national emergency” related to the influx of synthetic opioids into the US. However, China has firmly rejected these claims, labeling them as baseless and politically motivated.
The new tariffs, which took effect on February 4, 2025, impact a wide range of Chinese imports, affecting industries such as technology, textiles, and consumer goods. Additionally, China argues that the US policy restricts the availability of duty-free de minimis treatment and drawback provisions, further violating international trade norms.
China’s Legal Challenge at WTO
In its WTO complaint, China highlights several key violations of international trade agreements, including:
• Article I:1 of GATT 1994 – The US tariffs fail to extend equal treatment to China, violating the principle of non-discrimination in global trade.
• Article II:1(a) & (b) of GATT 1994 – The tariffs imposed exceed the US’s agreed tariff rates, making them illegitimate under WTO law.
• Protectionist Trade Policies – China contends that the measures are designed to restrict Chinese exports, favor US domestic industries, and undermine fair trade practices.
Furthermore, China argues that these tariff measures nullify trade benefits that China is entitled to under WTO agreements, thereby harming Chinese businesses and exporters.
Implications for Global Trade
The escalating trade tensions between China and the US have raised concerns among WTO members, as the dispute could lead to broader economic repercussions. In recent years, China and the US have engaged in multiple rounds of trade conflicts, with tariffs and countermeasures disrupting global supply chains. The latest tariff policy is expected to further strain bilateral relations and increase volatility in international markets.
Despite these challenges, China remains firm in its commitment to resolving the issue through WTO mechanisms. The country has expressed its willingness to engage in diplomatic consultations but has also indicated that it reserves the right to seek further legal remedies if the US fails to comply with WTO obligations.
As China awaits the US response, the global trade community will be closely monitoring how the dispute unfolds and whether it will escalate into another US-China trade war.