By Olivia Le Poidevin
GENEVA (Reuters) -China filed a new complaint with the World Trade Organization on Wednesday after earlier telling the world trade body that U.S. tariffs on Beijing are “reckless” and threaten to further destabilise global trade.
“The situation has dangerously escalated. …As one of the affected members, China expresses grave concern and firm opposition to this reckless move,” China said in a statement to the WTO, sent to Reuters by the Chinese mission in Geneva.
U.S. President Donald Trump’s tariffs on dozens of countries took effect on Wednesday, including massive 104% duties on Chinese goods, escalating a global trade war.
Trump says the tariffs are necessary to end heavy U.S. trade deficits with many of its trading partners, with China having by far the largest trade surplus with the United States.
China responded by raising its tariffs on U.S. imports to 84% from 34%, while the European Union will launch its first countermeasures, mostly consisting of 25% duties, next week.
“While China opposes trade wars, it will firmly defend its legitimate interests,” it said in a statement to WTO members during a meeting on trade in goods.
China on Wednesday accused the U.S. of violating the WTO’s rules and said it was undermining the multilateral trading system. It encouraged the WTO Secretariat to study the impact of tariffs on global trade and report its findings to members.
“Reciprocal tariff is not – and will never be – a cure for trade imbalances. Instead, they will backfire, harming the U.S. itself,” China’s statement to the WTO said.
Twenty WTO members also took to the floor during Wednesday’s meeting in Geneva, including Switzerland, the EU and Canada, to raise concerns about the impact of soaring tariffs.
Some members said U.S. reciprocal tariffs ran contrary to the fundamental principles of the WTO – and could increase costs, disrupt supply chains and harm developed and developing economies alike, a Geneva-based trade official said.
A selloff in global markets accelerated after China announced its new round of tariffs, with U.S. stock index futures moving sharply lower.
U.S. Treasury Secretary Scott Bessent said on Wednesday that China’s latest move was a losing proposition for Beijing.
A WTO official told Reuters that China’s new complaint came on top of its previous request for consultations with the U.S. filed on April 4.
Bilateral consultations are the first stage of a formal dispute settlement. If no solution is found within 60 days, China could request adjudication by the WTO’s Dispute Settlement Body.
(Reporting by Olivia Le Poidevin; editing by Miranda Murray, Ludwig Burger, Alex Richardson, Sharon Singleton and Mark Heinrich)
