China challenges Trump tariffs at WTO, package shippers warn of chaos

There has really been absolutely zero time for anyone to prepare for this,

said Maureen Cori, co-founder of New York-based consultancy Supply Chain Compliance

We're all running around like headless chickens at this moment in time, trying to second-guess what's going to happen,

said Martin Palmer, co-founder of Hurricane Commerce, a cross-border e-commerce data provider

China reserves the right to raise additional measures and claims regarding the matters identified herein during the course of consultations and in any future request for the establishment of a panel,

the Chinese statement said

It is not clear whether China and the U.S. could reach an agreement to reach a tariff truce,

the economist wrote

We are not eager to change our baseline assumption of tariff hike to 60%. We maintain the view that the tariff war between China and the U.S. more likely will further escalate from here, but with large uncertainties regarding the timing, the pace and the magnitude of further tariff increase,

the Wall Street bank said

I do think that there is a real possibility that Trump might back off and try to cut a deal with China,

said Roberts

China can bar exports to the US of critical minerals, as well as ban exports of products unique to China which will greatly impact the US, such as antibody precursors used by pharmaceutical firms which come exclusively from China,

said Okun

The rationale for filing the case (at the WTO) is to give China the moral high ground for retaliation,

Stephen Olson, a visiting fellow at the ISEAS-Yusof Ishak Institute, told CNA

Retaliatory measures are not limited to China imposing counter-tariffs … the situation can escalate very quickly given how strongly China can retaliate,

said Steven Okun, CEO of the public affairs consultancy firm APAC Advisors

The US’ unilateral tariff hike severely violates WTO rules. Not only does it fail to resolve its own issues, but it also disrupts normal economic and trade cooperation between China and the US,

said a Chinese commerce ministry spokesperson on Feb 2.

China followed this playbook in 2019 against Trump when it focused its retaliatory tariffs on agriculture and energy goods - two sectors predominantly located in Republican-heavy states,

Okun pointed out

(The ... The WTO is) pretty toothless now, it doesn't have a good enforcement mechanism … countries take it less and less seriously,

said Roberts from the Atlantic Council

The fact that the tariffs are 10% and not higher, the fact that he's trying to do a deal on TikTok - I could see Trump doing some sort of big deal that would encompass other areas,

he added

I think the retaliation is not aggressive, as China only targets some US products, in response to the US tariff on all China’s exports to the US. This is likely only the beginning of a long process for the two countries to negotiate,

said Zhang Zhiwei, president and chief economist of Pinpoint Asset Management

I suspect they thought they would get the opportunity to do some deal-making that would delay the Trump tariffs, as did Mexico and Canada,

Dexter Tiff Roberts, a non-resident senior fellow at the US think tank Atlantic Council’s Global China Hub, told CNA

If we can't make a deal with China, then the tariffs would be very, very substantial,

he said

Exports and investment can only drive growth so far … I think it's actually a sign that China does not want this to flare up even more,

said Roberts

They can always go back and start to levy some tariffs,

Roberts said

Stating they will go to the WTO gives them an action to which they can point to their domestic audience, and to also make the case to a global audience that China is the country upholding the international rules-based order,

Okun told CNA

China firmly opposes the U.S. actions, and urges the U.S. side to immediately rectify its wrongdoings,

the spokesperson said