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Trade War Intensifies: China to Dispute US Tariffs at WTO

US President Donald Trump has mandated a 25% tariff on imports from Canada and Mexico, along with a 10% tariff on Chinese goods.

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Trade War Intensifies: China to Dispute US Tariffs at WTO

China has announced its intention to contest the latest US tariffs through the World Trade Organization (WTO), as per a statement from the Chinese commerce ministry on Sunday.

According to Reuters, the ministry stated, “The imposition of tariffs by the US seriously violates WTO rules,” and urged Washington to “engage in frank dialogue and strengthen cooperation” rather than heightening trade tensions.

US President Donald Trump has mandated a 25% tariff on imports from Canada and Mexico, along with a 10% tariff on Chinese goods. These tariffs, scheduled to take effect on Tuesday, are expected to remain in place until the national emergency related to fentanyl and illegal immigration is resolved.

The decision has triggered widespread reactions, with multiple stakeholders voicing concerns about its potential impact on trade relations and the broader economy.

Reactions across the Globe

Canada: Prime Minister Justin Trudeau has announced countermeasures, implementing a 25% tariff on a range of US goods.

Mexico: President Claudia Sheinbaum has responded with retaliatory tariffs and additional non-tariff measures while urging dialogue with the US.

China: The Chinese Foreign Ministry has pledged to take “necessary countermeasures” against US tariffs, asserting that “fentanyl is America’s problem” and stressing that “there are no winners in trade wars.”

Industry concerns

The American Automotive Policy Council, which represents Ford Motor, General Motors, and Stellantis, has raised concerns that the tariffs could weaken the competitiveness of US automakers and hinder investment in the domestic workforce.

Economists have cautioned that these tariffs may spark a new trade war, potentially slowing global economic growth and driving up inflation.