US tariffs on China: ‘Urge US to correct its wrongful actions,’ says China; plans to move WTO

China's Ministry of Commerce has declared its intention to file a claim with the World Trade Organization (WTO) in response to the United States' decision to impose tariffs on Chinese goods. The ministry stated that the "unilateral tariff hikes by the US seriously violate World Trade Organization rules" and that the move "not only fails to address America’s own issues" but also "disrupts normal China-US economic and trade cooperation." 

“We urge the US to correct its wrongful actions, safeguard the hard-won progress in bilateral anti-drug cooperation, and promote the stable, healthy and sustainable development of China-US relations,” the foreign ministry said, as mentioned in South China Morning Post.

The decision by the US, announced by President Donald Trump, involves a 10 per cent tariff on Chinese imports, attributed to China's alleged role in the flow of fentanyl precursor chemicals to the US. "China strongly opposes and is deeply dissatisfied [with the US decision]," the ministry added as per the report, urging the US to adopt a rational approach to domestic issues like fentanyl rather than resorting to tariff threats against other countries.

The US tariffs are part of a broader trade strategy also targeting Canada and Mexico, with tariffs set at 25 per cent. The tariffs are scheduled to take effect on Tuesday and are intended to pressure China to take "adequate steps" to address the opioid crisis, as fentanyl, a potent synthetic opioid, has been linked to numerous deaths in North America. 

The White House has cited issues beyond fentanyl, including "intellectual property theft, forced technology transfer, and other unreasonable behaviour," as justification for the tariffs. However, China's Ministry of Foreign Affairs defended its anti-narcotics policies, describing them as "one of the world’s strictest and most thorough enforcers of anti-narcotics policies." The ministry stated that "the fentanyl crisis is a problem of the United States, and out of humanitarian concern, China has supported US efforts to tackle the issue." 

Financial analysts have expressed concern over the potential economic impact of the tariffs, warning of possible recession and "stagflation"—a mix of stagnant growth and inflation—in the US. Analysts at ING suggested that "economically speaking, escalating trade tensions are a lose-lose situation for all countries involved." 

In response, Canada and Mexico have announced retaliatory tariffs, with Canadian Prime Minister Justin Trudeau calling for a boycott of US goods. Meanwhile, Mexico's President Claudia Sheinbaum criticised the US stance on fentanyl, arguing that "Fentanyl is America's problem," and suggested that tariffs will not solve the issue.

The political ramifications of the tariffs have been significant, with criticism from both domestic and international figures. US Democratic lawmakers have labelled the tariffs an overreach of executive power, with Senate Democratic Leader Chuck Schumer stating, "No matter which way you slice it: costs are going to climb for consumers," and promising efforts to "undo this mess." 

Trump, however, maintains that the tariffs are necessary to address what he describes as a national emergency related to fentanyl and illegal immigration. Despite acknowledging potential short-term pain, he insists the US has been "ripped off by virtually every country in the world," and believes the tariffs are a necessary step to rectify trade imbalances.