China has accused the US of making “unfounded and false allegations” about its role in the fentanyl trade to justify tariffs on Chinese products.
The complaint was lodged with the World Trade Organization (WTO) one day after US President Donald Trump raised border taxes on Chinese goods by 10%, a measure he said was intended to address an influx of illegal drugs.
In the filing, China said the measures were “discriminatory and protectionist” and violated trade rules.
The dispute comes as Trump’s plans for tariffs – a tax he has said he wants to see imposed on all foreign shipments into the country – are causing uncertainty across the global trade landscape.
Trump has said tariffs will encourage firms to make their products in the US, repeatedly expressing concern about the size of America’s trade deficit.
But his actions against China – which he has threatened to widen to include Canada, Mexico, and Europe – have sparked concerns about their impact on the global economy, including in the US, as businesses respond to trade uncertainty by holding off on investments or pass on new costs to customers.
