Imposition of trade tariffs by the USA on China: implications for the WTO and international trade law

Abstract

Purpose The increased integration of national economies and the belief that international trade is beneficial to societies has led to the formation of the World Trade Organization (WTO), to regulate the conduct of international trade by national governments. Using US domestic legislation and case laws, as well as the provisions of the General Agreement on Tariffs and Trade (GATT) 1994, the purpose of this paper is to analyze the legality or otherwise of the recent imposition of unilateral trade tariffs by the USA on China. Design/methodology/approach This paper adopts a doctrinal approach through a critical review of extant legislation and case laws. Drawing from existing literature in the area of WTO and international trade law, the paper argues that the imposition of tariffs by the Trump administration is outside the scope provided for by the WTO rules. Findings The paper finds that the imposition of unilateral tariffs by the Trump Government, while in breach of US domestic legislation and case laws, as well as the country’s obligations under the GATT 1994, portends a clear danger to the continued existence of the WTO and to international trade in general. Originality/value This paper is an original study of the author, which extends the body of knowledge in the area of international trade law, by analyzing the possible implications of the imposition of trade tariffs by the USA on China and offering suggestions on how the impasse can be resolved.