China announces to challenge Trump’s tariff at World Trade Organisation

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China announces to challenge Trump's tariff at World Trade Organisation
(FILES) This file picture taken on November 6, 2018 shows a Chinese and US flag at a booth during the first China International Import Expo (CIIE) in Shanghai. - With the eyes of the world on Washington for the high-stakes trade talks on May 11-12, 2019 between China and the United States, none will be more focused than those of Chinese exporters who are increasingly worried about the impact of more tariffs. (Photo by JOHANNES EISELE / AFP)

China has on Sunday denounced the Donal Trump administration over imposition of a long-threatened 10 per cent tariff on Chinese imports while leaving the door open for talks with the US that could avoid a deepening conflict.

The Chinese finance and commerce ministries said that Beijing will challenge President Donald Trump’s tariff at the World Trade Organisation and take unspecified “countermeasures” in response to the levy, which takes effect on Tuesday.

The response stopped short of the immediate escalation that had marked China’s trade showdown with Trump in his first term as president and repeated the more measured language Beijing has used in recent weeks.

Trump on Saturday ordered 25% tariffs on Canadian and Mexican imports and 10% on goods from China, saying Beijing needed to stanch the flow of fentanyl, a deadly opioid, into the United States.

China’s commerce ministry said in a statement that Trump’s move “seriously violates” international trade rules, urging the US to “engage in frank dialogue and strengthen cooperation”.

Filing a lawsuit with the WTO would be a largely symbolic move that Beijing has also taken against tariffs on Chinese-made electric vehicles by the European Union.

For weeks Chinese Foreign Ministry spokesperson Mao Ning has said Beijing believes there is no winner in a trade war.