US tariffs on China illegal: WTO

The World Trade Organization said on Tuesday that Trump administration tariffs on Chinese goods totalling more than $200 billion are illegal under the rules of the global trade body.

The decision marks the first time the Genevabased trade body has ruled against a series of tariffs that President Donald Trump's government has imposed on a number of countries, allies and rivals alike.

Trump has repeatedly criticised the WTO, which oversees international disputes on trade, for allegedly treating the US unfairly.

In its decision, the WTO ruled against the Trump administration's argument that China has engaged in practices harmful to US interests, on issues including intellectual property theft, technology transfer and innovation.

The ruling, would allow in theory, China to impose retaliatory tariffs on billions worth of US goods--if the process is completed. But the US government can appeal the decision announced by the WTO's dispute settlement body, and the WTO's appeals court is no longer f unct i o ni ng— l a r g e l y because of Washington's refusal to accept new members for it.

The US tariffs target two batches of Chinese products. Duties of 10 per cent were imposed on some $200 billion worth of goods in September 2018, and were jacked up to 25 per cent eight months later. An additional 25 per cent duties were imposed in June 2018 against Chinese goods worth $34 billion in annual trade.

The WTO panel ruled that the US measures violated long-standing international trade rules as they only applied to products from China, and that the US had not substantiated its claim that the Chinese products hit with the extra duties had benefitted from unfair Chinese practices.