WTO allows China billions of dollars in tariffs against the US

In a long-standing trade dispute, China is allowed to impose punitive tariffs on US imports of nearly $ 3.6 billion a year. The decided arbitrator at the World Trade Organization (WTO). The background is a dispute over anti-dumping measures, which started in 2014. He has nothing to do with the current trade tensions between the US and China.

China had criticized methods by which the US investigated Chinese export practices and concluded that China was dumping. WTO arbitrators had given justice to China through several instances and ruled that some US methods violated World Trade Organization rules. They also noted that the US did not change its methods in a timely manner.

Dumping means the export of goods at a price that does not cover the cost of production. This should gain market share or drive competitors out of the market.

Just recently, China has announced punitive tariffs against the US in another 2012 WTO case. It was about US tariffs for subsidies for state-owned enterprises in China, which violated WTO rules. Here is the arbitration award on the amount of punitive duties still pending. China demands a sum of 2.4 billion dollars.