The World Trade Organization determined that when China imposed tariffs on U.S. goods after the Trump administration imposed tariffs on certain Chinese imports, China was violating its trade agreements. Zippy Duvall, president of the American Farm Bureau Federation (AFBF), applauded the ruling, saying global food security should not be threatened by retaliatory actions, according to an Aug. 16 AFBF release.
"AFBF is pleased that the WTO dispute panel ruled against China’s imposition of unjust retaliatory tariffs on U.S. agricultural products," Duvall said in the release. "Agricultural trade is necessary for food security around the world and should not be endangered by retaliation for unrelated concerns."
The WTO issued its ruling last week, with a WTO panel saying the tariffs imposed by the Trump administration were in the interest of national security, while China's tariffs in response were retaliatory and "inconsistent" with its trade commitments, Supply Chain Dive reported.
In 2018, Donald Trump put a 10% tariff on aluminum imports and a 25% tariff on steel imports. In response, China imposed tariffs of up to 25% on more than 100 U.S. goods, including pork, almonds and a variety of fresh produce, according to Supply Chain Dive. The WTO panel asked China to reverse its tariffs and “bring its WTO inconsistent measure into conformity with its obligations.”
U.S. Department of Agriculture data shows that from 2018 to 2019, American agricultural exporters lost more than $27 billion because of China's tariffs, Supply Chain Dive reported. China could potentially appeal the WTO's ruling, and the nation's commerce ministry has now called on the U.S. to repeal its steel and aluminum tariffs.
"The United States is pleased with the World Trade Organization panel report released today, recognizing that the U.S. Section 232 actions on steel and aluminum are security measures, and that the People’s Republic of China illegally retaliated with sham 'safeguard' tariffs," Office of the U.S. Trade Representative Spokesperson Sam Michel said in an Aug. 16 release.
"The United States condemns China’s refusal to correct its severe and persistent non-market excess capacity for steel and aluminum that is at the heart of a global crisis that led to the U.S. Section 232 national security actions," Michel added, according to the release. "The Biden administration is committed to standing up for U.S. workers and all workers of market-oriented companies and industries, and creating and maintaining a fair, worker-centered trading system."
