China To Inquire WTO Nod For $2.4bn Tariffs On US Goods

The government of China has said its will seek the World Trade Organisation permission to impose a tariff of $2.4 billion worth on US goods as compensation in a dispute that occurred in the year 2012. 

This was according to a statement circulated to WTO members last week, but sent to journalists on Monday, China claimed the penalty was justified given the “United States continued non-compliance” with previous WTO rulings.

The move comes as the world’s two largest economies continue to seek a deal to resolve a trade war that has seen billions of dollars in tit-for-tat tariffs imposed by both countries.

But the case was initiated in 2012 after former US president Barack Obama’s administration slapped duties on Chinese products ranging from thermal paper to solar panels and drill pipe.

The Obama administration had argued that the duties were necessary to counter Chinese dumping of low cost goods into the US, unfairly harming American producers.

China took the case to the WTO’s Dispute Settlement Body (DSB), arguing the US counter-measures breached international trade rules, ultimately winning a partial victory.

In March 2018, WTO judges found the US had failed to comply with earlier rulings, and that Washington was still applying illegal duties.