China to sue US over Trump’s new tariffs
China will file a lawsuit at the World Trade Organization (WTO) and take other retaliatory measures against US President Donald Trump’s new tariffs on its goods, the Commerce Ministry said in a statement on Sunday. According to the statement, Beijing sees Washington’s unilateral tariff increase as “seriously violating” WTO rules.
Trump announced new tariffs on China, Mexico, and Canada on Saturday, citing concerns over the three countries’ failures in stemming the flow of migrants and illegal drugs, such as fentanyl, into the US. In order to hike the tariffs, Trump declared a national economic emergency, invoking the International Emergency Economic Powers Act (IEEPA), which authorizes the president to unilaterally manage imports.
The tariffs, set to enter into effect on February 4, will amount to a 25% tax on all imports from Mexico and most goods from Canada, and a 10% tariff on Chinese goods. According to a fact sheet published by the White House, the tariffs will be in place with no exemptions “until the crisis is alleviated.”
China’s Commerce Ministry said Beijing is “strongly dissatisfied” with Washington’s action and “firmly opposes” it.
“It is not only unhelpful in solving [Washington’s] own problems, but also undermines the normal economic and trade cooperation between China and the US,” the ministry stated, adding that Beijing “will take corresponding countermeasures to firmly safeguard its own rights and interests,” without disclosing details. It added that the US should “objectively and rationally view and deal with its own problems” such as illegal drug imports, instead of “threatening other countries with tariffs.”
The ministry said Beijing will file a formal complaint over the new tariffs with the WTO, which has legal power to permit a country suffering from another country’s tariffs to respond with its own. As both the US and China are WTO members, they are required to abide by its decisions when in dispute.
China’s Foreign Affairs Ministry called the tariffs “not constructive,” warning that this could reignite a trade war.
“China’s position is firm and consistent. Trade and tariff wars have no winners… This move cannot solve the US’s problems at home and more importantly, does not benefit either side, still less the world,” the ministry said in a statement late Saturday. It also warned that the new tariffs will “harm the counternarcotics cooperation between the two sides in the future.”
Canada and Mexico have already lashed out against Trump’s accusations and tariffs. Hours after the announcement, Canada slapped 25% tariffs on US goods, which will be “far-reaching and include everyday items,” according to Prime Minister Justin Trudeau. Mexican President Claudia Sheinbaum instructed the Economy Ministry on Saturday to implement “Plan B,” which involves tariff and non-tariff retaliatory measures against Washington. While details have not been disclosed, sources claim that Mexico aims to impose measures on US industries such as agriculture.
