The World Trade Organization (WTO) ruled China overstepped its trade agreements by imposing tariffs on $2.4 billion of U.S. goods.
On Wednesday, a trio of WTO specialists concurred with the U.S., stating China’s tariffs breached the organization’s “most favored nation” principle. This principle mandates the WTO’s 164 members to treat each other impartially or offer trade concessions as compensation, as Bloomberg reported.
The dispute dates back to the Trump administration’s tariffs on steel and aluminum when the U.S. introduced a 25% tariff on worldwide steel imports and a 10% tariff on aluminum, aimed to counter the surge of inexpensive metals from China. In retaliation, China levied tariffs on various U.S. imports, including aluminum waste, pork and certain fruits.
Biden administration lauds the WTO’s ruling. Expressing satisfaction with the WTO’s decision, the Biden administration pointed out China’s contradictory stance.
“China’s decision to pursue this dispute highlights its hypocrisy by both suing the United States in the WTO and at the same time unilaterally retaliating with tariffs,” remarked U.S. Trade Representative spokesperson Sam Michel.
Both nations have a 60-day window to appeal the decision. If China chooses to appeal, it would effectively be a veto, given the WTO appellate body’s inactivity since 2019.
The U.S. criticized China for not addressing its excessive steel and aluminum production, which has been a significant concern globally. The Biden administration emphasized its dedication to defending U.S. workers and promoting a balanced, worker-focused trade system.
Both United States Steel Corporation and the VanEck Vectors Steel ETF surged 0.6% on Wednesday.
Produced in association with Benzinga
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