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China launches WTO dispute over Trump tariffs

Donald Trump announced 10% tariffs on Chinese exports, while China vowed to retaliate
Donald Trump announced 10% tariffs on Chinese exports, while China vowed to retaliate

China has launched a dispute at the World Trade Organisation (WTO) over tariffs imposed by US President Donald Trump on Chinese goods, the Geneva-based body said.

Mr Trump ordered tariffs on goods from Mexico, Canada and China, demanding they staunch the flow of fentanyl - and illegal immigrants in the case of Canada and Mexico - but later froze tariffs against the two North American countries.

He said he would delay the imposition of tariffs on Canadian exports by 30 days in return for concessions on border and crime enforcement.

Mexico meanwhile began moving troops to its northern border as part of a 10,000-member deployment that President Claudia Sheinbaum promised Mr Trump in exchange for a delay of his tariffs.

China, which Mr Trump subjected to a tariff of 10% on goods exports, had vowed to challenge the step at the WTO.

In a statement cited by the WTO, China's government said the measures appeared to be inconsistent with US obligations under the agreement that led to the creation of the trade body.

"China reserves the right to raise additional measures and claims regarding the matters identified herein during the course of consultations and in any future request for the establishment of a panel," the Chinese statement said.

Canada looks to reduce US reliance

Canadian business and labour leaders will meet in Toronto this Friday to discuss diversifying trade and boosting the economy in the wake of Mr Trump's threats, Prime Minister Justin Trudeau said.

The move underlined long-standing calls for measures to reduce reliance on the United States, which takes 75% of all Canada's goods and services exports.

Mr Trudeau said the one-day meeting would group leaders in trade, business, public policy, and organised labour to build what he called a long-term prosperity agenda.

Justin Trudeau said the meeting will discuss diversifying trade

"(They) will explore ways to grow Canada’s economy, make it easier to build and trade within the country, diversify export markets, and rejuvenate productivity," he said in a statement.

The US trade gap swelled last year to its second-largest on record, government data showed.

In 2024, the overall US trade deficit grew to $918.4 billion, widening 17% from 2023 as imports ballooned more than exports, said the Commerce Department.

The trade deficit in goods also reached a new record for the year, in official data going back to 1960.