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Trade tensions between the United States and China continue to escalate as China has officially requested consultations under the World Trade Organization (WTO) Dispute Settlement Mechanism regarding USA tariff measures. The case is drawing widespread attention from the international trade community, not only due to the scale of the tariff actions but also because of the complex legal arguments raised by both sides.
In this context, import-export businesses—especially those engaged with the world’s two largest economies—must closely monitor developments and proactively prepare appropriate response strategies.
On April 8, 2025, China submitted a formal request for consultations with the United States, initiating WTO dispute case DS638 concerning the USA imposition of additional retaliatory tariffs of up to 84% on Chinese goods, effective from April 9. This marks the first procedural step in the WTO dispute resolution process and reflects China’s strong response to the USA’s retaliatory tariff measures.
Previously, the United States had continuously issued presidential memoranda to tighten trade policies, reassess imbalanced trade relationships, and impose additional tariffs on imports. Starting with a base rate of 10%, the retaliatory tariffs were increased based on trade deficit ratios, with China facing the highest rate—up to 84%—after Beijing implemented similar retaliatory measures.
China accuses the USA of violating several core provisions of the GATT 1994 and WTO agreements, including the principles of non-discrimination, exceeding bound tariff rates under the USA Schedule of Concessions, the application of unreasonable customs valuation policies, and the use of prohibited subsidies. Furthermore, China cited provisions in the Agreement on Customs Valuation and the Agreement on Subsidies and Countervailing Measures to reinforce its legal arguments.
Notably, case DS638 is not China’s first consultation request against the USA in 2025. In February, China also initiated case DS633 concerning a 20% USA tariff imposed under the justification of a national emergency.
These developments signal a rising trend of bilateral trade tensions and a high likelihood of additional retaliatory measures in the near future.
As trade remedy measures are increasingly applied and growing in complexity, Vietnamese businesses must proactively track international trade disputes, particularly those between major partners such as the USA and China.
Early engagement and cooperation with law firms specializing in anti-dumping and trade remedy matters will enable businesses to assess risks, prepare effective response strategies, and safeguard their legitimate interests in the global supply chain. Do not wait for disputes to erupt—act now to protect your business position and commercial interests.
To protect their legitimate interests, manufacturers and exporters should familiarize themselves with the procedure and actively contact Vietnamese law firms specializing in anti-dumping and trade remedy for timely assistance.
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