China has lodged a complaint with the World Trade Organization (WTO) against the U.S., accusing it of imposing “discriminatory and protectionist” tariffs. The move comes a day after President Donald Trump raised tariffs on Chinese goods by 10%, linking them to China’s alleged role in the fentanyl trade.
China’s WTO Challenge
In its complaint, China argues the tariffs violate international trade rules. However, experts say China is unlikely to win the case as the WTO’s dispute panel is nonfunctional due to the U.S. blocking the appointment of new judges.
Tom Graham, a former chair of the WTO appellate body, told the BBC that while China may have a strong legal case, “it has no possibility of succeeding.”
Economic and Political Repercussions
Trump’s tariff policies have created uncertainty in global trade. In December, U.S. imports hit a record high of $293.1 billion as businesses rushed to secure foreign-made goods. The U.S. trade deficit also widened, with China ranking as the country with the largest deficit in goods at $25.3 billion.
Meanwhile, the tariffs have triggered retaliation from China, including trade measures against U.S. companies. Reports suggest Beijing is preparing an anti-monopoly probe into Apple’s App Store fees, mirroring its earlier actions against Google.
WTO Deadlock
Under WTO rules, the U.S. and China have 60 days to resolve the dispute through negotiations. If no resolution is reached, China can request a ruling. However, with the appellate body unable to function, any final decision is unlikely to materialize.
Jeff Moon, a former U.S. trade official, said China’s complaint is a strategic move to portray the U.S. as the one undermining global trade rules.
As trade tensions escalate, Trump has signaled his intent to expand tariffs to include Canada, Mexico, and Europe, raising concerns about further economic fallout.
