United States – Universal and Country-specific
Additional Duties on Imports from China
Communication from the united states
The following communication, dated 14 April 2025, was received from the delegation of the United States with the request that it be circulated
to the Dispute Settlement Body (DSB).
_______________
On
April 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"), Article XXIII of the General Agreement on Tariffs and Trade 1994 ("GATT 1994"),
Article 19 of the Agreement on Implementation of Article VII of the General
Agreement on Tariffs and Trade 1994 (the "Customs Valuation
Agreement"), and Articles 4 and 30 of the Agreement on Subsidies and Countervailing
Measures (the "SCM Agreement").
China's
request concerns certain actions of the United States related to the President's
Executive Order 14257 of April 2, 20251, the National Emergencies Act, and the International Emergency
Economic Powers Act, relating to issues of national security. The President determined that additional
duties were necessary to address the national emergency arising from conditions
reflected in large and persistent annual U.S. goods trade deficits with trading
partners, threatening the national security and economy of the United
States. 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 April 4, 2025,
China asserted that the U.S. actions breach WTO rules and announced additional
tariffs of 34 percent on certain products of U.S. origin in response to the
U.S. actions listed in the April 4, 2025, request for consultations.2 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.3
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. 15,041 (April 2,
2025), available at
https://www.federalregister.gov/documents/2025/04/07/2025-06063/regulating-imports-with-a-reciprocal-tariff-to-rectify-trade-practices-that-contribute-to-large-and.
2 Announcement of the State Council
Tariff Commission on imposing additional tariffs on imports originating in the
United States, Tax Commission Announcement No. 4 of 2025 (April 4, 2025), available at
https://gss.mof.gov.cn/gzdt/zhengcefabu/202504/t20250404_3961451.htm. China subsequently announced additional
tariffs of 125 percent on certain products of U.S. origin. Announcement of the Customs Tariff Commission
of the State Council on Adjusting the Additional Tariff Measures on Imports
Originating in the United States, Tax Commission Announcement No. 6 of 2025
(April 11, 2025), available at https://gss.mof.gov.cn/gzdt/zhengcefabu/202504/t20250411_3961823.htm.
3 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").