China has announced plans to file a formal complaint with the World Trade Organization after the United States imposed new tariffs under an executive order signed by former President Donald Trump.
According to Business Time, The tariffs include a 25 percent duty on all imports from Mexico, 25 percent on most products from Canada, and a 10 percent tariff on goods from China.
The Trump administration says the tariffs are aimed at curbing drug trafficking and illegal immigration, but critics argue they will drive up prices for American consumers, affecting products like avocados, sneakers, and cars.
The tariffs have sparked swift reactions from Mexico, Canada, and China. Mexican President Claudia Sheinbaum has announced retaliatory tariffs, while Canadian Prime Minister Justin Trudeau has introduced new levies on American goods.
China’s Ministry of Commerce condemned the US decision as a violation of WTO rules and vowed to take countermeasures, although it has not disclosed specific steps.
Meanwhile, China’s Ministry of Foreign Affairs dismissed Trump’s claim that tariffs would help combat drug trafficking.
“Tariffs are not constructive and will only undermine cooperative efforts to combat narcotics,” a spokesperson said. The ministry also pushed back against US concerns about fentanyl, with officials stating, “Fentanyl is America’s problem,” and arguing that China has already provided substantial assistance in addressing the issue.
The escalating trade tensions have raised fears of a global trade war, with concerns that the economic fallout could be severe.
Speaking at the World Economic Forum in Davos, WTO Director-General Ngozi Okonjo-Iweala warned that retaliatory tariffs could lead to significant global economic losses.
She cautioned that if countries engage in tit-for-tat trade restrictions, the world could face a situation similar to the economic downturn of the 1930s.
With China filing a WTO complaint, international pressure on the US is growing, and global markets are closely watching how the situation unfolds.