The World Trade Organization found on Tuesday that the United States had breached global trading rules by imposing multi-billion dollar tariffs in President Donald Trump’s trade war with China, a ruling that drew anger from Washington.
Washington says tariffs it imposed two years ago on more than $200 billion (£155 billion) in Chinese goods were justified because China was forcing companies to transfer technology and intellectual property.
But the WTO’s three-person panel said the U.S. duties broke trading rules because they applied only to China and were above maximum rates agreed by the United States. Washington had not then adequately explained why its measures were a justified exception, the panel concluded.
“This panel report confirms what the Trump administration has been saying for four years: the WTO is completely inadequate to stop China’s harmful technology practices,” U.S. Trade Representative Robert Lighthizer said in a statement.
China’s commerce ministry said Beijing supported the multilateral trading system and respected WTO rules and rulings, and hoped Washington would do the same.
The United States could appeal against Tuesday’s ruling. However, that would put the case into a legal void, because Washington has already blocked the appointment of judges to the WTO’s appellate body, preventing it from convening the minimum number required to hear cases.
The WTO panel was aware it was stepping into hot waters. It noted that it had looked only into the U.S. measures and not China’s retaliation, which Washington has not challenged at the WTO.❐
