After the World Trade Organization [WTO] granted China a new tariff weapon in retaliation for $645 million in annual U.S. exports escalating the trade war between the two biggest economies, Washington derided the move on Tuesday. On January 26, a WTO arbitrator announced the WTO’s ruling on the level of countermeasures China can seek in its dispute with the United States over Washington’s countervailing duties on certain products from China, according to the press release released by the WTO. The World Trade Organization has allowed China to impose countervailing tariffs against America, a move that has drawn widespread condemnation from the United States.

While the amount was less than what was requested by Beijing, around $2.4 billion, China was granted legal permission to target American goods and products. As China holds formal WTO authorization to retaliate against US goods and services in a new twist in the trade and commerce dispute that dates back to 2012, US Trade Representative spokesman Adam Hodge, said in a statement that the decision by the WTO is “deeply disappointing”.

This “reflects erroneous interpretations by the Appellate Body that undermine the ability of WTO members to defend our workers and businesses against trade-distorting Chinese subsidies”, reportedly said US Trade Representative Adam Hodge, in a statement.

US calls for reform of WTO rules after dispute settlement

In an emailed statement, Hodge said the WTO ruling “reinforces the need for reform of WTO rules and dispute settlement, which have been used to protect China’s non-market economic practices. and undermine fair, market-oriented competition,” according to Swissinfo.

The United States had imposed a series of tariffs on Chinese products. Unlawful countervailing duties were imposed on a dozen Chinese imports, including thermal paper, pipes, citric acid, lawn mowers, kitchen shelves, chalk bricks, printed graphics, panels solar panels, wind towers and steel sinks. US tariffs on more than $300 billion worth of Chinese goods were also imposed by former US President Donald Trump. In 2012, Beijing went to the WTO to challenge anti-subsidy tariffs imposed by the United States between 2008 and 2012 on more than 22 Chinese products, including solar panels and steel wire. When the decision was announced, Washington accused the WTO of leniency towards China, adding that it was getting easier treatment at the WTO.