WTO: Chinese Retaliatory Tariffs on U.S. Violated Trade Rules

SEATTLE (Scrap Monster): The World Trade Organization (WTO) ruled that the retaliatory tariffs imposed by China against U.S Steel and aluminum tariffs are in violation of the international trade rules. The WTO panel concluded that the additional duties measure by China is inconsistent with the articles of the General Agreement on Tariffs and Trade (GATT).

The decision was hailed by the U.S. administration. A spokesperson for the U.S. Trade representative said that the ruling reiterated its claim that China had illegally retaliated with sham safeguard tariffs. It must be noted that China had imposed tariffs on as many as 128 U.S. imports in retaliation to the decision by the Trump administration to impose steep tariffs on steel and aluminum from other countries, including China. The U.S. administration had claimed that the massive flow of imports threatened national security.

It must be noted that WTO panels had ruled that the U.S. tariffs too violated the international trade rules. At the same time, it was observed that U.S. measures were implemented to counter national security threats, unlike Chinese action intended to protect domestic industry. The U.S. has appealed against the rulings.

Meantime, China is eligible to file an appeal against the WTO ruling.