Although it seems like the trade war between the United States and China has become a commonplace topic on the financial markets, every week we learn of a new development on that front that adds new pressures to assets.
Though much of the squabble between the world’s two largest economies before the World Trade Organization has been about the tariffs introduced this year, now China is ready to take legal action against the US on a case that’s already five years old.
China first filed a complaint against the United States regarding dumping tariffs on products that included metals, machines, and electronics, among other goods. The total amount of goods targeted then is just under $9 billion, which hardly seems alarming compared to Trump’s tariffs on $200 billion worth of Chinese imports. However, while the WTO has not passed any judgement on Trump’s tariffs from 2018, the dumping policies of the US from 2013 have been officially found illegal in several instances, so China will likely be getting permission to levy sanctions on US goods.
