World Trade Organization on Tuesday has ruled against the levy of tariffs by the US government on $200bn worth of Chinese goods. The trade body in a panel report on Sep 15 stated that Washington has violated international trade rules since these tariffs merely targeted Chinese goods.
A duty of 10pc were levied on Chinese goods in Sep 2018, which were raised to 25pc after eight months. Moreover, additional 25pc duty was also levied on Chinese goods worth $34bn of annual trade in July 2018. These products include motorcycles and airplane propellers among others.
These sanctions under section 301 of the Trade Act 1974 were justified by the US government alleging that China leveraged access to its markets and forced US companies to transfer technology and steal intellectual property.
The ruling, however, could have little or no impact on these tariffs. Should the US appeal the ruling, the case could go into a legal void, considering that US government has already paralysed the appellate tribunal of the trade body.