Chinese and U.S. flags flutter near The Bund, before U.S. trade delegation meet their Chinese counterparts for talks in Shanghai, China July 30, 2019. REUTERS/Aly Song

WASHINGTON (Reuters) - The United States is disappointed by a World Trade Organization (WTO) decision that China may slap compensatory sanctions on U.S. imports worth $3.579 billion annually for the U.S. failure to remove anti-dumping duties, a U.S. official said on Friday.

The decision by the three-member arbitration panel “overstates the amount of the impact on China,” the official said, adding that Washington believed the WTO’s approach had “no foundation in economic analysis.”

The Trump administration would actively consult within the U.S. government and with stakeholders on how to move forward, the official said. The case would not have any impact on ongoing trade discussions between the United States and China, the official added.