China on Tuesday asked the World Trade Organization (WTO) to begin dispute talks with the United States over new U.S. tariffs, including a 10% duty on imports from all countries starting April 5, and a 34% duty on Chinese imports set to take effect on April 9. The request was shared with WTO members on April 8.
China claimed that the measures were inconsistent with the United States' obligations under various provisions of the General Agreement on Tariffs and Trade (GATT) 1994, the Agreement on Customs Valuation, and the Agreement on Subsidies and Countervailing Measures.
Moreover, Canada has also initiated WTO dispute regarding US duties on automobiles and auto parts.
China has vowed to "fight to the end" after Trump threatened to further ramp up tariffs.
Trump has upended the world economy with sweeping tariffs that have raised the spectre of an international recession, but has ruled out any pause in his aggressive trade policy despite a dramatic market sell-off.
Beijing -- Washington's major economic rival but also a key trading partner -- responded by announcing its own 34 percent duties on US goods to come into effect on Thursday, deepening a showdown between the world's two largest economies.
The swift retaliation from China sparked a fresh warning from Trump that he would impose additional levies of 50 percent if Beijing refused to stop pushing back against his barrage of tariffs -- a move that would drive the overall duties on Chinese goods to 104 percent.
"I have great respect for China but they can not do this," Trump said at the White House.
"We are going to have one shot at this... I'll tell you what, it is an honour to do it."
China swiftly hit back, blasting what it called "blackmailing" by the United States and vowing "countermeasures" if Washington imposes tariffs on top of the 34 percent extra that were due to come in force on Wednesday.
"If the US insists on going its own way, China will fight it to the end," a spokesperson for Beijing's commerce ministry said on Tuesday.
WTO consultations give the parties an opportunity to discuss the matter and to find a satisfactory solution without proceeding further with litigation.
After 60 days, if consultations have failed to resolve the dispute, the complainant may request adjudication by a panel.
China claimed that the measures were inconsistent with the United States' obligations under various provisions of the General Agreement on Tariffs and Trade (GATT) 1994, the Agreement on Customs Valuation, and the Agreement on Subsidies and Countervailing Measures.
Moreover, Canada has also initiated WTO dispute regarding US duties on automobiles and auto parts.
China has vowed to "fight to the end" after Trump threatened to further ramp up tariffs.
Trump has upended the world economy with sweeping tariffs that have raised the spectre of an international recession, but has ruled out any pause in his aggressive trade policy despite a dramatic market sell-off.
Beijing -- Washington's major economic rival but also a key trading partner -- responded by announcing its own 34 percent duties on US goods to come into effect on Thursday, deepening a showdown between the world's two largest economies.
The swift retaliation from China sparked a fresh warning from Trump that he would impose additional levies of 50 percent if Beijing refused to stop pushing back against his barrage of tariffs -- a move that would drive the overall duties on Chinese goods to 104 percent.
"I have great respect for China but they can not do this," Trump said at the White House.
"We are going to have one shot at this... I'll tell you what, it is an honour to do it."
China swiftly hit back, blasting what it called "blackmailing" by the United States and vowing "countermeasures" if Washington imposes tariffs on top of the 34 percent extra that were due to come in force on Wednesday.
"If the US insists on going its own way, China will fight it to the end," a spokesperson for Beijing's commerce ministry said on Tuesday.
WTO consultations give the parties an opportunity to discuss the matter and to find a satisfactory solution without proceeding further with litigation.
After 60 days, if consultations have failed to resolve the dispute, the complainant may request adjudication by a panel.
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