United States – Universal and Country-specific
Additional Duties on Imports from China

Request for Consultations by China

Addendum

The following communication, dated 9 April 2025, from the delegation of China to the delegation of the United States, is circulated to the Dispute Settlement Body in accordance with Article 4.4 of the DSU.

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My authorities have instructed me to request consultations with the Government of the United States of America 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 Article 4 and 30 of the Agreement on Subsidies and Countervailing Measures (the "SCM Agreement") with respect to the United States' measures that further increase the additional tariffs from 34% to 84% on imported products from China under the so-called "reciprocal tariff" measures. This addendum supplements and does not replace China's request for consultations dated 4 April 2025[1].

I.     MEASURES AT ISSUE

1._       Subsequent to the above mentioned request for consultations, the United States issued the Executive Order[2] of 8 April 2025, which amends the Executive Order[3] of 2 April 2025 and increases the additional tariffs effective on 9 April 2025 on all imported products originating in China from 34% to 84%. The measures at issue are applied to products of Chinese origin only and are in excess of the United States' bound rates in its Schedule of Concessions and Commitments annexed to the GATT 1994. The measures at issue are in breach of the United States' WTO obligations and commitments, and further demonstrate the unilateral and discriminatory nature of its current trade policies, which seriously undermine the rules-based multilateral trading system, with the WTO at its core.

2._       The measures at issue include, inter alia:

·_        the International Emergency Economic Powers Act of 1977, 50 U.S.C 1701 et seq;

·_        the National Emergencies Act, 50 U.S.C. 1601 et seq;

·_        Section 604 of the Trade Act of 1974, 19 U.S.C. 2483;

·_        Executive Order of 2 April 2025: Regulating Imports with a Reciprocal Tariff to Rectify Trade Practices that Contribute to Large and Persistent Annual United States Goods Trade Deficits;

·_        Fact Sheet[4]: President Donald J. Trump Declares National Emergency to Increase our Competitive Edge, Protect our Sovereignty, and Strengthen our National and Economic Security;

·_        Executive Order of 8 April 2025: Amendment to Reciprocal Tariffs and Updated Duties as Applied to Low-Value Imports from the People's Republic of China.

3._       The supplemental request for consultations also includes any amendments, supplements, or extensions to the measures specified above, as well as any closely connected, subsequent, replacement or implementing measures.

II.    LEGAL BASIS OF THE COMPLAINT

4._       The measures at issue appear to be inconsistent with the United States' obligations under the following provisions of the GATT 1994, the Customs Valuation Agreement, and the SCM Agreement, including:

·_        Article I:1 of the GATT 1994, because the measures at issue fail to extend immediately and unconditionally to products originating in China an "advantage, favour, privilege or immunity" granted by the United States "[w]ith respect to customs duties and charges of any kind imposed on or in connection with" the importation of products originating in the territory of other Members.

·_        Article II:1(a) and (b) of the GATT 1994, because the United States imposes additional tariffs on all imported products originating in China as identified in measures above that are in excess of United States bound rates in its Schedule of Concessions and Commitments annexed to the GATT 1994, and therefore fails to accord to the products originating in China and imported into the United States treatment no less favourable than that provided for in the United States' Schedule of Concessions and Commitments annexed to the GATT 1994.

·_        Article X:3(a) of the GATT 1994, because the United States does not administer the measures at issue in a uniform, impartial, and reasonable manner.

·_        Articles 1.1 and 8 of the Customs Valuation Agreement, and the relevant interpretative Notes in Annex I thereto, as well as paragraphs 1 and 2 of the General Introductory Commentary of the Customs Valuation Agreement, and Articles VII:1, VII:2(a), (b) and (c) of the GATT 1994, because the United States, by excluding the value of the "U.S. content" of the imported products from the application of the additional tariffs, fails to use the transaction value, that is the price actually paid or payable for the goods, as the basis for customs value, and applies unjustified adjustment or valuation methods for customs purposes.

·_        Articles 3.1 and 3.2 of the SCM Agreement, because the United States, by excluding the value of the "U.S. content" of the imported products from the application of the additional tariffs, provides subsidies, within the meaning of Article 1 of the SCM Agreement, contingent in law or in fact, upon export performance and the use of domestic over imported goods. The available evidences are the documents listed in the Measures at Issue above.

5._       In addition, and as a consequence of the foregoing, the measures at issue appear to nullify or impair benefits accruing to China, directly or indirectly, under the cited agreements.

6._       China reserves the right to raise additional measures and claims regarding the matters identified herein during the course of consultations and in any future request for the establishment of a panel.

7._       China looks forward to receiving the reply of the United States to this request and to setting a mutually convenient date for consultations.

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