United States – Universal and Country-specific
Additional Duties on Imports from China
Communication from the united states
The following communication, dated 17 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 9, 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,
2025,[1]
Executive Order 14259 of April 8, 2025,[2]
the National Emergencies Act, 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 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 China's April 4, 2025, request for consultations.[3] On April 9, 2025, China again asserted that
the U.S. actions breach WTO rules and announced increased tariffs of 84 percent
on certain products of U.S. origin in response to the U.S. actions listed in
the April 9, 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 April 9, 2025, 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] See 90 Fed. Reg.
15,509 (April 8, 2025), available at
https://www.federalregister.gov/documents/2025/04/14/2025-06378/amendment-to-reciprocal-tariffs-and-updated-duties-as-applied-to-low-value-imports-from-the-peoples.
[3] 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.
[4] 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. 5 of 2025 (April 9, 2025), available at
https://gss.mof.gov.cn/gzdt/zhengcefabu/202504/t20250409_3961684.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.
[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").