China has requested World Trade Organization (WTO) consultations with the United States over tariffs proposed by the Trump administration pursuant to Section 301 of the Trade Act of 1974, according to a notice circulated Thursday to WTO members.
China claims that the proposed 25 percent “Section 301” tariffs would be over the U.S.’s WTO-bound tariff rates, and that the measures would violate three other WTO rule provisions.
WTO consultation requests are the first step in the WTO’s dispute process, and consultations can be escalated by any party to formal adjudication by a WTO dispute resolution panel within 60 days of such a request if consultations don’t resolve the underlying complaint.
China’s request for consultations follows a March 23 request for WTO consultations by the Trump administration over China’s intellectual property practices, which the Office of the U.S. Trade Representative (USTR) cited as the underlying justification for the “Section 301” tariffs formally proposed this week by USTR through a notice outlining products that would be affected.
China on Wednesday released a list of 106 U.S. exports worth about $50 billion in 2017 trade value, which China said will face 25 percent retaliatory tariffs if the U.S.-proposed tariffs are finalized.