By Olivia Le Poidevin
GENEVA (Reuters) -China told the World Trade Organization on Wednesday that the United States’ decision to impose what it has called reciprocal tariffs on Beijing threatens to further destabilise global trade.
“The situation has dangerously escalated. …As one of the affected members, China expresses grave concern and firm opposition to this reckless move,” China said in a statement to the WTO that was sent to Reuters by the Chinese mission to the WTO.
U.S. President Donald Trump’s “reciprocal” tariffs on dozens of countries took effect on Wednesday, including massive 104% duties on Chinese goods, as the European Union prepared retaliatory measures, escalating a global trade war.
China vowed to respond to Trump’s tariffs.
“While China opposes trade wars, it will firmly defend its legitimate interests,” it said in a statement to WTO members during a meeting on trade in goods.
U.S. stock index futures moved sharply lower on Wednesday after China announced additional tariff measures on U.S. goods.
China would impose 84% tariffs on U.S. goods from Thursday, up from the 34% previously announced, the finance ministry said.
‘VIOLATING WTO RULES’
China on Wednesday accused the U.S. of violating the WTO’s rules and said it was undermining the multilateral trading system.
It encouraged the WTO’s Secretariat to study the impact of reciprocal tariffs on the global trade, and report its findings to members.
“Reciprocal tariff is not – and will never be – a cure for trade imbalances. Instead, they will backfire, harming the U.S. itself,” China’s statement to the WTO said.
Trump’s sweeping tariffs have shaken a global trading order that has persisted for decades, raised fears of recession, and wiped trillions of dollars off the market value of major firms.
Trump has shrugged off the market rout and offered investors mixed signals about whether the tariffs will remain in the long term, describing them as “permanent” but also saying that they were pressuring other leaders to ask for negotiations.
(Reporting by Olivia Le Poidevin, Editing by Miranda Murray, Ludwig Burger and Alex Richardson)
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