financetom
Business
financetom
/
Business
/
China dispute seen as early test of Trump's stance towards WTO
News World Market Environment Technology Personal Finance Politics Retail Business Economy Cryptocurrency Forex Stocks Market Commodities
China dispute seen as early test of Trump's stance towards WTO
Feb 6, 2025 9:09 AM

GENEVA (Reuters) - China's new trade dispute with the U.S. could test Washington's commitment to the World Trade Organization, which has so far escaped the scrutiny of President Donald Trump, a critic of multilateral institutions, trade sources said on Thursday.

The Geneva-based body said on Wednesday that China had formally launched a dispute at the WTO over a 10% tariff imposed by Trump on Chinese goods, in moves that raised fears of a new trade war between the world's two largest economies.

Unlike other global organisations from which Trump plans to withdraw or disengage, the global trade watchdog has avoided early criticism from the White House. In Trump's first term, a top U.S. trade official criticised the organisation as "completely inadequate".

Trade delegates and analysts said there was a possibility this latest dispute on Chinese goods -- and especially any future WTO ruling against the U.S. -- could prompt a hostile reaction towards the body.

"The current administration is nothing if not quick to vengeance, and as the WHO has recently learned it's impossible to rule anything out once President Trump or his advisers decide the U.S. has been aggrieved by a multilateral institution," said Dmitry Grozoubinski, executive director of the Geneva Trade Platform think tank, in response a question about the dispute's impact.

Such possible hostile acts from the U.S. administration might include withholding funding, blocking the appointment of trade negotiation chairs or simply withdrawing, he said.

A spokesperson for nominated U.S. trade representative Jamieson Greer did not immediately respond to a request for comment.

A similar dispute raised by China against the U.S. drew the Trump's administration's ire when the WTO ruled against Washington in 2020. But he never made good on a threat to withdraw from the organisation, which the U.S. was instrumental in creating.

It did however, maintain a policy of blocking judge appointments to the top court, which has paralysed the WTO Appellate Body since December 2019. This means that while an interim ruling on the latest China-U.S. dispute could be expected in late 2025 or early 2026, a final ruling is unlikely to be made since either party can appeal it into a legal void.

According to WTO rules, the next step is for Washington to reply to China's complaint within 10 days and then start consultations within 30 days "with a view to reaching a mutually satisfactory solution."

Any refusal by Trump's team to answer would be nearly unprecedented, according to trade sources. "They (Washington) has always complied in the past, but we are in a new era," said one of the trade sources.

Comments
Welcome to financetom comments! Please keep conversations courteous and on-topic. To fosterproductive and respectful conversations, you may see comments from our Community Managers.
Sign up to post
Sort by
Show More Comments
Related Articles >
China condemns Trump's 'tariff shocks' at WTO, US hits back
China condemns Trump's 'tariff shocks' at WTO, US hits back
Feb 19, 2025
GENEVA (Reuters) -China condemned tariffs launched or threatened by U.S. President Donald Trump at a World Trade Organization meeting on Tuesday, saying such tariff shocks could upend the global trading system in a warning dismissed as hypocritical by Washington. Trump has announced sweeping 10% tariffs on all Chinese imports, prompting Beijing to respond with retaliatory tariffs and to file a...
Trump Reportedly Mulling 25% Tariff on Automobile, Pharmaceutical, Semiconductor Imports
Trump Reportedly Mulling 25% Tariff on Automobile, Pharmaceutical, Semiconductor Imports
Feb 19, 2025
05:43 AM EST, 02/19/2025 (MT Newswires) -- US President Donald Trump is mulling a 25% tariff on automobile, pharmaceutical and semiconductor chip imports, several news outlets reported Wednesday. According to the reports, Trump said more details on the automotive tariffs will be released on April 2. The president did not disclose a similar timeline for the pharmaceutical and semiconductor tariffs....
Commerzbank on Overnight News
Commerzbank on Overnight News
Feb 19, 2025
05:45 AM EST, 02/19/2025 (MT Newswires) -- Commerzbank in its European Sunrise note of Wednesday highlighted: Markets: United States Treasuries fall into New York close, sideways in Asia. E-minis advance further in Asia after SPX had recovered earlier losses, Asian equities mixed. EUR stronger at $1.045, Brent rises above $76/barrel. Tariffs: U.S. President Donald Trump says he will impose tariffs...
Elliot Investment Vows to Fight Emerson Electric Acquisition of AspenTech
Elliot Investment Vows to Fight Emerson Electric Acquisition of AspenTech
Feb 19, 2025
05:30 AM EST, 02/19/2025 (MT Newswires) -- Emerson Electric's ( EMR ) bid to acquire all the shares of Aspen Technology (AZPN) it does not already own is unfair to AspenTech shareholders, said minority investor Elliott Investment Management Wednesday, vowing to fight the proposal. AspenTech's board said last month it agreed to a $265 per share all-cash acquisition by Emerson,...
Copyright 2023-2026 - www.financetom.com All Rights Reserved