US challenges its major trading partners over retaliatory tariffs on American goods

On Monday, July 16, the United States reportedly brought cases to the World Trade Organisation against the European Union, China, Canada, Mexico, and Turkey, as they had been imposing heavy retaliatory duties on American exports.

US Trade Representative Robert Lighthizer claimed that these retaliatory duties by the US trading partners violated the rules of the Geneva-based WTO that is responsible for mediating trade disputes.

“Instead of working with us to address a common problem, some of our trading partners have elected to respond with retaliatory tariffs designed to punish American workers, farmers and companies,” he said.

He also said that if WTO also recognises that these retaliatory duties are violating its rules, then it will assess the damage and calculate tariffs that the US should be entitled to. This means the US will retaliate against the retaliation.

The United States had imposed a 10 per cent tariff on imported aluminium and 25 per cent on imported steel in view of its national security. Recently, it is pursuing a bigger national security case against car imports, proposing heavy tariffs on imported vehicles.

Besides, Trump is also involved in a trade dispute with China over the tactics Beijing has used to challenge the US technological dominance. Last week, the Trump administration declared to impose 10 per cent tariff on US$200 worth of Chinese goods, though will not come into effect until this September.