In a heated Tuesday session at the World Trade Organization (WTO), China strongly condemned the tariffs launched or threatened by U.S. President Donald Trump, warning that these “tariff shocks” pose a significant threat to the global trading system and could potentially trigger a global recession.
The Tariff Dispute
President Trump has announced sweeping tariffs, including a 10% levy on all Chinese imports and an additional 25% tariff on steel and aluminium. These measures have prompted Beijing to respond with retaliatory tariffs targeting U.S. coal and liquefied natural gas. The escalating trade tensions between the world’s two largest economies have raised concerns about the stability of the global market.
China’s Response
China’s ambassador, Li Chenggang, at the WTO meeting, voiced strong concerns about the U.S.’s unilateral and protectionist measures. He emphasized that these tariffs violate WTO rules and disrupt global trade. Li warned that the “tariff shocks” heighten economic uncertainty, risk domestic inflation, and could lead to market distortions and a global recession.
Global Implications
The WTO’s Director-General, Ngozi Okonjo-Iweala, urged member countries to refrain from retaliating and to engage in multilateral dialogues to avoid “catastrophic” trade wars. The meeting highlighted the deep-rooted tensions between the U.S. and China, with both sides accusing each other of violating WTO rules and undermining the multilateral trading system.
Conclusion
As the trade dispute unfolds, the global community watches closely, aware that the outcome could have far-reaching implications for international trade and economic stability. The call for cooperation and adherence to WTO rules remains crucial in navigating these turbulent times.
