The World Trade Organization has ruled that Washington's tariffs imposed a couple of years ago on 200 billion U.S. dollars-worth of Chinese goods are illegal.
Tuesday's ruling by the WTO's dispute settlement body is the first time it has ruled against tariffs imposed by the Trump administration.
The panel explained that the U.S. violated international trade rules by slapping tariffs on Chinese goods.
It also ruled against Washington's argument that Beijing has wrongly engaged in practices harmful to America's interests on a range of issues such as intellectual property theft and technology transfer.
The comment immediately drew criticism from U.S. Trade Representative Robert Lighthizer, who said Washington had presented (quote) "extensive evidence" of China's intellectual property breaches, and the WTO failed to address the issue.
He added that the Trump administration will not let Beijing use the WTO to take advantage of American workers, businesses and farmers.
Beijing's commerce ministry said the ruling was (quote) "objective and fair," calling for Washington to respect it.
Under WTO rules, the U.S. has 60 days to appeal.
But, it remains to be seen whether the WTO can give out its final verdict as its appellate body cannot function currently as it does not have a quorum to operate, as the U.S. has blocked the appointment of its members.
Kim Hyo-sun, Arirang News.