WTO Finds U.S.’s Chinese Tariffs Violated Trade Rules; Companies Sue

On Sept. 15, the World Trade Organization announced that the U.S.’s multi-billion-dollar tariffs on China, first levied in 2018, violated global trading rules, Reuters reports. The WTO panel stated the tariffs broke trading rules because they applied only to China and “were above maximum rates agreed to by the United States,” according to Reuters.

U.S. Trade Representative Robert Lighthizer responded to the WTO’s ruling by calling the organization “completely inadequate to stop China’s harmful technology practices.” The U.S. is expected to appeal the ruling.

The Home Depot joined approximately 3,500 U.S. companies in suing the Trump administration over the duties imposed on more than $300 billion in Chinese-made products, Reuters reported.

The suits were filed in the U.S. Court of International trade and named Lighthizer and the Customs and Border Protection agency. The suits challenge the list of 25% tariffs on about $200 billion in imports and a list of 7.5% tariffs on $120 billion in products, arguing the Trump administration “failed to impose tariffs within a required 12-month period and did not comply with administrative procedures,” according to Reuters.

The Home Depot’s lawsuit cites tariffs on bamboo flooring and cordless drills, among other Chinese-made goods.