China has formally requested consultations with the United States regarding new tariff measures that could escalate tensions between the two economic giants.

The request, submitted by China’s delegation to the United States, was made under the framework of the World Trade Organization (WTO) dispute settlement process.

The request, which was circulated to WTO members on February 5, addresses concerns about the 10 per cent additional ad valorem duties recently applied to all Chinese-origin products.

The additional tariffs, which came into effect on February 4, were introduced by the US as part of measures to combat the alleged influx of synthetic opioids into the country.

Along with the tariff increase, the US implemented regulations concerning the availability of drawback and duty-free de minimis treatment, which apply exclusively to Chinese goods.

China argued that these measures violated the United States’ most-favoured-nation obligations under Article I:1 of the General Agreement on Tariffs and Trade (GATT) 1994, as well as the US’s tariff commitments under Article II:1(a) of the same agreement.

According to China, the tariffs and associated measures were inconsistent with the US’s obligations under the WTO framework, particularly in terms of non-discriminatory treatment and tariff obligations.

In a statement, Chinese officials described the US tariffs as both discriminatory and protectionist, asserting that they violate WTO rules, particularly the General Agreement on Tariffs and Trade (GATT) 1994.

The complaint filed by China underscored that the new tariffs exceeded the United States’ bound commitments in its WTO schedule, thus breaching its obligations under international trade agreements.

China also raised concerns about the measures’ discriminatory nature, noting that they applied exclusively to Chinese products and did not extend the same advantages or privileges to China as were granted to other WTO members.

China’s request for consultations aimed to resolve these issues through dialogue, though the country reserved the right to escalate the matter further if an agreement could not be reached.

The request outlined that China might raise additional concerns regarding the tariffs in future discussions or if a dispute panel was eventually established.

The US had not yet responded to the formal request, but consultations were expected to take place in the near future.

As both countries navigated this latest trade dispute, the outcome of these consultations could have significant implications for international trade relations and the ongoing US-China economic rivalry.