China filed a complaint to the World Trade Organization (WTO) against US President Donald Trump’s decision to impose import duties on steel and aluminum. The Asian country has requested a 60-day consultation with the United States to resolve the dispute.
If the two sides do not find a solution, the next step is for Beijing to ask for a ruling by a trade expert group. According to China, customs duties of 25% for steel imports and 10% for aluminum imports violate international trade rules.
The tensions between the two countries grew at the beginning of April when US President Donald Trump said he was considering imposing additional duties on goods worth 100 billion USD coming from China. This move would triple the value of Chinese goods under the US import duties, compared to the Chinese counter-measures for products worth 50 billion USD.
The US Trade Representative found that China “has repeatedly tried to receive American intellectual property in a dishonest manner”, and Trump has ordered the Department of Commerce to investigate whether to impose new 100 billion USD levies to protect intellectual property, and if yes – on what goods.
“China will remove its trade barriers because it is the right decision. The levies will become reciprocal and an agreement on intellectual property will be reached. A great future for both countries”, wrote the US president on Twitter. Trump also points out in the announcement that he and Chinese President Xi Jinping will always be friends “no matter what happens to our trade dispute”.
The markets remain awaiting the outcome of the case study between the two major world economies.