• China has initiated World Trade Organization dispute consultations with the US over new tariff measures on goods originating from China
• The request was circulated to WTO members on February 5
• The US implemented a 10% additional tariff on goods originating in China, effective February 4
• China claims the tariffs are inconsistent with US obligations under Article I:1 and Article II:1(a) of the General Agreement on Tariffs and Trade 1994
China has initiated World Trade Organization (WTO) dispute consultations with the United States over new tariff measures on goods originating in China. The request was circulated to WTO members on February 5.
China claims the 10% additional ad valorem duties applied on all goods originating in China, as well as measures concerning the availability of drawback and duty-free de minimis treatment, which apply to all products of Chinese origin, are inconsistent with US most-favored-nation obligations under Article I:1 of the General Agreement on Tariffs and Trade (GATT) 1994 and US tariff obligations under Article II:1(a) of GATT 1994.
The US issued a fact sheet and Executive Order on 1 February 2025, implementing the 10% additional tariff on goods from China. These measures are imposed under section 1702(a)(1)(B) of the International Emergency Economic Powers Act (IEEPA) as part of an alleged attempt to address the “national emergency” with respect to the alleged influx of synthetic opioids into the US.
Consequently, all products from China, as defined by the Federal Register notice, are subject to an additional 10% ad valorem rate of duty, effective on February 4, 2025.
The measures at issue, including the 10% additional tariffs and measures related to the availability of drawback and duty-free de minimis treatment, apply only to products of Chinese origin. China argues that the tariffs imposed are in excess of the United States’ bound rates in its Schedule of Concessions and Commitments annexed to the GATT 1994 and that these measures violate WTO rules, being “discriminatory and protectionist in nature.”
China also asserts that the measures at issue include Section 1702(a)(1)(B) of the International Emergency Economic Powers Act, a fact sheet outlining the tariffs imposed by President Donald J. Trump on imports from Canada, Mexico, and China, and an Executive Order dated February 1. The Federal Register notice containing modifications to the Harmonized Tariff Schedule of the United States, effective on February 4, is also cited.
In summary, China claims that the measures are inconsistent with the United States’ obligations under the GATT 1994 and seeks consultations to address these concerns.
READ: US Customs seeks to limit duty exemptions for de minimis shipments
