WTO finds Washington broke trade rules by putting tariffs on China; ruling angers U.S.

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WTO finds Washington broke trade rules by putting tariffs on China; ruling angers U.S.
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The WTO found that the United States breached global trading rules by imposing multibillion-dollar tariffs in President Donald Trump’s trade war with China, a ruling that drew anger from Washington

GENEVA/BRUSSELS - The World Trade Organization found on Tuesday that the United States breached global trading rules by imposing multibillion-dollar tariffs in President Donald Trump’s trade war with China, a ruling that drew anger from Washington.

“This panel report confirms what the Trump administration has been saying for four years: the WTO is completely inadequate to stop China’s harmful technology practices,” U.S. Trade Representative Robert Lighthizer said in response. The United States is likely to appeal Tuesday’s ruling. That would put the case into a legal void, however, because Washington has already blocked the appointment of judges to the WTO’s appellate body, preventing it from convening the minimum number required to hear cases.The WTO panel was aware it was stepping into hot water. It noted that it had looked only into the U.S. measures and not China’s retaliation, which Washington has not challenged at the WTO.

During a two-year trade war with Beijing, Trump threatened tariffs on nearly all Chinese imports - more than $500 billion - before the two countries signed a"Phase 1" trade deal in January. Extra tariffs are still in place on some $370 billion worth of Chinese goods, and $62.16 billion in duties have been collected since July 2018, U.S. Customs dataFILE PHOTO: A logo is pictured on the headquarters of the World Trade Organization in Geneva, Switzerland, June 2, 2020.

The decision could help fuel a Trump decision to leave the WTO or underpin U.S. arguments for reforming the 25-year-old trade body, said Margaret Cekuta, a former USTR official who helped write a crucial report on China’s intellectual property abuses that preceded Trump’s tariffs.

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