WTO Complaint: China’s Response to Trump Tariffs
China has filed a complaint with the World Trade Organization (WTO) challenging the United States’ recent imposition of a 10% tariff on Chinese imports and the elimination of the duty-free exemption for low-value packages. Beijing contends that these measures are protectionist, discriminatory, and violate WTO rules.
The U.S. administration justifies the removal of the “de minimis” exemption by linking it to the unscreened entry of fentanyl precursors, alleging that drug traffickers exploit this loophole. China disputes these claims, labeling them as “unfounded” and asserting that the U.S. is using the fentanyl issue as a pretext for imposing tariffs.
The U.S. Postal Service briefly suspended accepting parcels from China and Hong Kong due to the policy change, causing confusion among shippers, retailers, and e-commerce platforms like Amazon and Temu. Services have since resumed, but the situation underscores the broader disruptions in global trade resulting from escalating tensions between the two nations.
China’s complaint initiates a formal dispute process at the WTO. However, the resolution may face delays, as the WTO’s Appellate Body has been inactive since December 2019 due to the U.S. blocking judge appointments.
This development marks a significant escalation in the ongoing trade tensions between the U.S. and China, with potential implications for global trade dynamics and economic stability.
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