White House monitoring China’s WTO complaint against US over 10% tariffs  

China accuses the United States of using “unfounded and false allegations” regarding its role in the fentanyl trade to impose trade restrictions.

The complaint follows the U.S. decision to raise tariffs on Chinese goods by 10%, a move President Donald Trump said was aimed at curbing the flow of fentanyl opioids and precursor chemicals from China.

In response, Beijing announced countermeasures, including a 15% tariff on coal and natural gas imports, and a 10% tariff on petroleum, agricultural equipment, high-emission vehicles, and pickup trucks.

Additionally, China imposed immediate restrictions on exports of certain critical minerals and launched an antitrust investigation into U.S. tech giant Google.

In its WTO filing, China described the U.S. tariff measures as “discriminatory and protectionist,” arguing that they violate international trade regulations. Beijing has formally requested consultations with Washington, initiating a legal process within the WTO’s dispute settlement mechanism.

However, trade analysts suggest that China’s WTO complaint is more symbolic than effective. The WTO’s Appellate Body, responsible for adjudicating trade disputes, has been largely dysfunctional since the Trump administration blocked the appointment of new appellate judges in 2019, citing concerns over judicial overreach.

“China understands that the WTO is unlikely to exert significant pressure on the U.S. because Washington can effectively block any legal proceedings,” said Jeffrey Schott, a senior fellow at the Peterson Institute for International Economics.

“The Chinese reaction has been moderate, indicating that they will act tit for tat against U.S. trade policies but not escalate beyond that,” he explained. This approach mirrors previous trade disputes during the Trump administration, where initial retaliatory measures were followed by negotiations that eventually led to trade agreements.

As China moves forward with its complaint, the White House remains watchful, though officials have yet to indicate any shift in U.S. trade policy. With the WTO’s dispute resolution process in limbo and bilateral tensions running high, the outcome of this latest trade clash remains uncertain.

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