World Trade Organisation rules US tariffs on Chinese goods illegal

Trade relations between China and the United States have hit another bump after a World Trade Organisation panel ruled US tariffs on $274 billion worth of Chinese goods are illegal.

The decision marked the first time the Geneva-based body opposed a series of high-profile tariffs on the basis they violate international rules.

The ruling would allow China to impose tariffs on US goods in retaliation if the process is completed.

Washington can repeal the decision.