UNITED STATES – ADDITIONAL TARIFF MEASURES ON GOODS
FROM CHINA
Communication from the united states
The following communication, dated 14 March 2025, was received from the delegation of the United States with the request that it be circulated
to the Dispute Settlement Body (DSB).
_______________
On March 4, 2025, the United States received
China's letter of the same date requesting consultations pursuant to Articles 1
and 4 of the Understanding on Rules and Procedures
Governing the Settlement of Disputes ("DSU") and Article
XXIII of the General Agreement on Tariffs and Trade 1994
("GATT 1994").
China's request concerns certain actions of the United States related to
the President's Executive Order 14195 of February 1, 2025,[1]
Executive Order 14228 of March 3, 2025,[2]
and the International Emergency Economic Powers Act relating to issues of
national security. Issues of national security are political matters not
susceptible to review or capable of resolution by WTO dispute settlement. Every
Member of the WTO retains the authority to determine for itself those measures
that it considers necessary to the protection of its essential security
interests, as is reflected in the text of Article XXI of the GATT 1994.
China has already
taken the unilateral decision that the U.S. actions cannot be justified under
WTO rules, and on that basis imposed tariff measures on U.S. goods.
Specifically, on February 4, 2025, China asserted that the U.S. actions breach
WTO rules and announced additional tariffs of 10 or 15 percent on certain
products of U.S. origin in response to the U.S. actions listed in the February 4, 2025,
request for consultations.[3]
On March 4, 2025, China announced additional 10 or 15 percent tariffs on
additional products of U.S. origin in response to the U.S. actions listed in
the March 4, 2025, request for consultations.[4]
It is specious for China to invoke dispute settlement for an alleged breach of
WTO rules while China itself apparently chooses to breach WTO rules by
unilaterally determining that a breach has occurred.[5]
Without prejudice to the U.S. view that the actions cited by China are
issues of national security not susceptible to review or capable of resolution
by WTO dispute settlement, or whether each of the items in China's letter
constitutes a "measure" within the meaning of Article 4 of the DSU,
the United States accepts the request of China to enter into
consultations. We stand ready to confer with officials from your mission on a
mutually convenient date for consultations.
__________
[1] See 90 Fed. Reg. 9,121 (February 7, 2025), available at
https://www.federalregister.gov/documents/2025/02/07/
2025-02408/imposing-duties-to-address-the-synthetic-opioid-supply-chain-in-the-peoples-republic-of-china.
[2] See 90 Fed. Reg. 11,463 (March 3, 2025), available at
https://www.federalregister.gov/documents/2025/03/07/
2025-03775/further-amendment-to-duties-addressing-the-synthetic-opioid-supply-chain-in-the-peoples-republic-of.
[3] Announcement of the State Council Tariff Commission on imposing
additional tariffs on some imported goods originating from the United States,
Tax Commission Announcement No. 1 of 2025 (February 4, 2025), available at
http://www.mof.gov.cn/zhengwuxinxi/caizhengxinwen/202502/t20250204_3955222.htm.
[4] Announcement of the State Council Tariff Commission on imposing
additional tariffs on some imported goods originating from the United States,
Tax Commission Announcement No. 2 of 2025 (March 4, 2025), available at
https://gss.mof.gov.cn/gzdt/zhengcefabu/202503/t20250304_3959228.htm.
[5] See DSU, Article 23.2 (where a Member seeks redress under the DSU,
the Member "shall not make a determination to the effect that a violation
has occurred, that benefits have been nullified or impaired or that the
attainment of any objective of the covered agreements has been impeded, except
through recourse to dispute settlement in accordance with the rules and
procedures of this Understanding").