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https://www.dw.com/en/trump-tariffs-china-levies-34-duties-on-us-goods/live-72138192:

The Commerce Ministry in Beijing also said it would increase the export controls on key rare earth materials that are essential for high-tech industries that produce chips and electric vehicle batteries. It also announced export controls for 27 US companies.

On top of the retaliatory measures, the ministry said it was filing a lawsuit with the World Trade Organization (WTO).

"The United States' imposition of so-called 'reciprocal tariffs' seriously violates WTO rules, seriously damages the legitimate rights and interests of WTO members, and seriously undermines the rules-based multilateral trading system and international economic and trade order," the Commerce Ministry said.

"It is a typical unilateral bullying practice that endangers the stability of the global economic and trade order. China firmly opposes this," it added.

Do Trump's new tariffs violate WTO regulations?

Franck Dernoncourt
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1 Answers1

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Yes

Here’s a simple guide, this is the full treaty by which all WTO members (including the USA) are bound. Specifically, the USA has committed to these.

Now, it’s likely that some if not all of the tariffs the USA has announced exceed the legally binding ceilings on tariffs - I haven’t checked but since average tariffs between WTO members are less than 4%, it’s almost certain.

More obviously, the WTO rules require that all WTO members are charged the same tariff, with exceptions for free-trade agreements or favouring underdeveloped nations. The announced tariffs self-evidently don’t do that - China is not being charges the same rate as New Zealand for example.

There is also another exception - retaliation. So while the USA is acting illegally, China isn’t.

Dale M
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