China has filed a formal complaint with the World Trade Organization (WTO), accusing the US of making “unfounded and false allegations” to justify its recent tariff increase on Chinese goods. The filing comes just one day after US President Donald Trump raised tariffs by 10%, citing concerns over an influx of illegal fentanyl into the country.
China labeled the tariffs as “discriminatory and protectionist,” arguing they violate global trade rules. However, experts caution that the dispute is unlikely to be resolved in China’s favor, as the WTO’s dispute settlement panel is currently unable to function due to the US blocking the appointment of new judges.
The trade conflict has intensified amid broader uncertainties surrounding Trump’s trade policies, including threats to expand tariffs to other countries like Canada, Mexico, and the EU. While Trump argues that tariffs will encourage US manufacturing, there are growing concerns over their impact on the global economy, with businesses delaying investments and passing on higher costs to consumers.
US imports surged to a record high in December as companies rushed to secure foreign-made products in anticipation of the tariffs. This has contributed to the widest trade deficit in nearly two years. In response, China has imposed retaliatory tariffs on US goods and launched an anti-monopoly investigation into Google, with reports suggesting a potential probe into Apple’s App Store policies as well.
Despite these tensions, experts believe the impact of Trump’s tariffs on China’s broader economy will be manageable. However, the stalled WTO process means that resolving the dispute could take years, with little chance of a definitive decision in the near future.
