China Criticizes US Tariffs; Trump Pushes for More Trade Barriers

China condemned the tariffs imposed or proposed by US President Donald Trump at a World Trade Organization (WTO) meeting, arguing that they threaten global economic stability. Trump, meanwhile, has announced plans for new tariffs, including a potential 25% duty on automobile imports, as part of his broader strategy to reshape international trade.

At the WTO General Council meeting, Chinese Ambassador Li Chenggang stated that "these 'tariff shocks' increase economic uncertainty, disrupt global trade and pose a risk of domestic inflation, market distortion, or even global recession." He warned that US trade actions could undermine the multilateral trading system. The US delegation, led by envoy David Bisbee, dismissed China's concerns, calling its economy a "predatory non-market economic system" and accusing Beijing of breaching WTO rules.

China has filed a WTO challenge against the US in response to Trump's tariffs, which include a 10% duty on all Chinese imports. The dispute marks one of the first significant tests of Trump's approach to the WTO, an institution his administration has criticized as "deeply flawed." While the US has argued that China has not honored its commitments since joining the WTO in 2001, Beijing contends that Washington is disregarding the organization’s rules.

Trump has also announced new trade measures targeting the automotive, semiconductor, and pharmaceutical industries. He states that auto tariffs "in the neighborhood of 25%" could take effect as soon as April 2, following reports from his cabinet outlining import duty options. The European Union has expressed concern over the potential tariffs, as the US already imposes a 25% tariff on pickup trucks from countries other than Mexico and Canada. Trump has said he wants the European Union to lower its tariffs on US vehicles, although EU officials have denied any such commitment.

In addition to auto tariffs, Trump has proposed a 25% duty on semiconductor chips and pharmaceutical imports, with the possibility of increases over time. He indicated that companies in these sectors would be given time to establish US manufacturing operations to avoid the tariffs.

Since his return to office, Trump has reinstated a 10% tariff on all imports from China, citing Beijing’s failure to halt fentanyl trafficking. He has also announced, but temporarily delayed, 25% tariffs on goods from Mexico and non-energy imports from Canada. Starting March 12, the US will impose a 25% tariff on all imported steel and aluminum, eliminating previous exemptions for key trading partners.

While Trump has justified his trade policies as a way to protect the US industry, the measures have raised concerns among global trade officials. Ngozi Okonjo-Iweala, Director-General, WTO, urges member states to use the organization as a forum for resolving disputes, stating that it was created "to provide a space for dialogue, prevent conflicts from escalating and support an open and predictable trading environment."

Trump previously threatened a 25% tariff on auto imports in 2018 and 2019, citing a national security investigation that found such imports weakened the domestic industrial base. However, he ultimately chose not to implement the measure. Analysts speculate that some findings from that investigation could be revisited as part of the administration’s renewed push for automotive tariffs.

With trade tensions escalating, EU Trade Chief Maros Sefcovic is scheduled to meet with US officials in Washington to discuss the implications of Trump's proposed tariffs. The outcome of these discussions could influence the next steps in what has become an increasingly complex trade standoff.