China Strongly Condemns US Tariffs on Steel and Aluminum, Demands Multilateral Trade Cooperation
On Thursday, February 13, 2025, China’s Ministry of Commerce harshly criticized the United States for its decision to impose a 25% tariff on all steel and aluminum imports, calling the move an example of "unilateralism" and "protectionism." The tariffs, set to take effect on March 4, 2025, are part of US President Donald Trump’s broader strategy to protect American industries from foreign competition. This announcement follows a series of escalating trade tensions between the two global economic giants.
Details of the US's New Tariff Measures
The newly announced tariff will affect steel and aluminum imports from all countries, marking an intensification of the previous trade measures under Section 232, which had already placed tariffs on steel and aluminum imports from specific nations. By signing proclamations on Monday, US President Trump ordered the tariffs to rise to 25%, a sharp increase from previous rates, which were often lower.
The goal behind this tariff hike is to shield the American steel and aluminum industries from what the US perceives as unfair competition, primarily from China and other countries. However, the move has sparked strong objections not only from China but also from many other countries affected by the tariffs, as well as from domestic critics within the US itself.
China's Response: Criticism of US Actions
He Yongqian, a spokesperson for MOFCOM, expressed China’s dissatisfaction with the US’s decision, pointing out that it represents a blatant example of protectionism. He referred to the tariff increase as "unilateral" in nature, emphasizing that such actions undermine the multilateral trading system that the World Trade Organization has worked to establish.
The Chinese government’s statement also referenced a key ruling by the WTO, which in 2022 determined that the US's previous Section 232 tariffs on steel and aluminum violated WTO rules. Despite this, the US not only retained these tariffs but also escalated the pressure by increasing them. He criticized this move as severely damaging to global economic stability, claiming it harms countries worldwide and disrupts the global supply chain.
The Global Reaction and China's Position
The US’s tariff decision has sparked significant opposition on the global stage. Many countries, particularly those whose steel and aluminum exports are affected, have expressed concern about the negative economic consequences of these tariffs. China, in particular, has been vocal in condemning the action and has called on the US to abandon what it considers a "zero-sum" mentality, which treats global trade as a win-lose situation, rather than as a platform for cooperative benefit.
He further urged the US to abandon its "wrong practices" and return to a more balanced and collaborative approach to international trade. This, he believes, would help resolve global trade concerns through mutual consultation, in accordance with WTO rules and principles.
China’s Legal Actions at the WTO
China has already taken action through official channels, highlighting its strong stance against the tariff hike. Following the US's announcement of a 10% tariff on Chinese imports on February 1, 2025, China lodged a formal complaint with the WTO's dispute settlement mechanism on February 4. This marks the beginning of a legal process that will follow WTO procedures to address the issue.
China’s spokesperson indicated that the government will continue to pursue the case through the proper legal channels to ensure that the US’s actions are held accountable and that fair trade practices are enforced globally. The dispute settlement mechanism of the WTO provides a framework for resolving such trade disagreements and is intended to restore balance and fairness in international trade relations.
Implications for Global Trade
This latest round of tariffs is expected to exacerbate already tense trade relations between the US and China, as well as with other nations that rely on steel and aluminum exports. The tariffs are likely to lead to higher costs for industries dependent on these materials, from construction to manufacturing, and could disrupt the stability of global supply chains. Both the US and China, as two of the world’s largest economies, have a significant influence on global trade flows, and their actions will likely have ripple effects across the international market.
As the US continues to implement and escalate its protectionist trade policies, global businesses and governments are left grappling with the impact of these moves. China's stance calls for a return to multilateral negotiations and greater cooperation among nations to ensure the fair distribution of trade benefits.
