China has launched a formal complaint at the World Trade Organization (WTO) over the imposition of a new 10% tariff on its goods by the US.
On Saturday (1 February), the White House announced tariffs on Chinese goods, as reported by the Daily Update.
As reported by the BBC, China has argued that the US has implemented the tariffs on the basis of “unfounded and false allegations” over its role in the flow of synthetic opioid fentanyl into the US.
In its complaint with the WTO, China alleged that the tariffs are “inconsistent with US most-favoured-nation obligations”.
However, one former WTO official said China has “no possibility of succeeding” in its efforts to secure a favourable WTO resolution, as the Appellate Body that arbitrates over trade disputes remains paralysed by the refusal of the US to appoint new judges.
China has also retaliated with increased duties on US coal and other imports, and by launching a new antitrust investigation into US tech giant Google.
EU targets tech
The EU is considering a similar strategy of targeting US tech firms, as it mulls retaliation should Trump choose to impose tariffs on the bloc that could include measures against ‘Big Tech’.
An EU official told the FT that “all options are on the table” in responding to tariffs. Brussels is said to be considering the use of its ‘anti-coercion instrument’, which would allow it to place restrictions on trade in services with the US in response to measures taken on goods.
US president Donald Trump has sought an end to EU action against US tech firms that included a €2.4bn fine on Google last year for abusing the market dominance of its shopping price comparison service.
Trump said last week that he was “absolutely” planning new tariffs on EU goods over both the bloc’s action on Big Tech and an ongoing trade deficit between the regions.
EU trade commissioner Maroš Šefčovič has said he would prefer to avoid tariffs but said that “if we are hit, we will react firmly”.
US brand suffers?
The chief executive of Suntory Holdings, which owns the Jim Beam and Maker’s Mark whiskey brands, has told the FT that US products could become “less accepted” by consumers who are unimpressed by Trump’s tariff threats.
Takeshi Niinami told the publication:
“We laid out the strategic and budget plan for 2025 expecting that American products, including American whiskey, will be less accepted by those countries outside of the US because of first, tariffs and, second, emotion.”
Selling US whiskey will be a greater priority in the US market itself now, Niinami said.
He said that the suspension of tariffs on Canada had left him “relieved”, but added that there would be a “huge impact” for his company “if our products are not sold in the stores in Canada”.
