The World Trade Organization (WTO) has declared the US tariffs on steel imports from China and other countries to be illegal. The WTO Dispute Settlement Body ruled today that the measures imposed are incompatible with the General Agreement on Tariffs and Trade (GATT). The panel therefore recommends that the United States “reconcile its measures with the obligations under the GATT”.
The WTO Dispute Settlement Body also found that the tariffs were not justified by the security exceptions provided for in the GATT, as they had not been applied in times of war or serious international tensions.
Washington, which justifies the tariffs with threats to national security, rejected the verdict. A spokesman for US Trade Representative Katherine Tai said the WTO body’s interpretation was “flawed”. The WTO does not have the power to review a member state’s ability to respond to security threats.
During his tenure, the administration of former US President Donald Trump imposed tariffs on steel and aluminum imports from China, Norway, Switzerland and Turkey. Several countries had filed suit against it. Trump’s successor, Joe Biden, retained the tariffs.
Under Trump, the United States also introduced punitive tariffs on steel from the EU. However, last year Biden agreed to lift tariffs on imports from the EU.