WTO says Trump's steel, aluminium tariffs breached global trade rules

World Trade Organization (WTO) on Friday said that the tariffs on steel and aluminium imports that were imposed by former US President Donald Trump violated the global trade rules. Trump had cited national security concerns when he instated the border taxes in 2018 resulting in trade controversy and clashes globally.

At the time, the US Secretary of Commerce had transmitted to Trump a report on the investigation into the effect of imports of steel mill articles on the national security of the United States under section 232 of the Trade Expansion Act of 1962.

"A strong steel and aluminium industry are vital to our national security, absolutely vital," Trump had said as he signed the order in 2018. "Steel is steel. You don't have steel, you don't have a country."

Trump adjusted the imports of those steel articles by imposing a 25% ad valorem tariff on such articles imported from all countries except Canada and Mexico.

Then House Speaker Paul Ryan disagreed with the decision, saying: "I disagree with this action and fear its unintended consequences. I am pleased that the president has listened to those who share my concerns and included an exemption for some American allies, but it should go further." Trump's 25 percent tariff on imported steel and a 10 percent levy on imported aluminum took effect in 15 days in 2018. He argued that the order would show "great flexibility and cooperation toward those that are real friends."

WTO said on Friday that it  was “not persuaded’’ that the United States faced “an emergency in international relations’’ that would justify the tariffs on aluminium and steel. 

A case was brought to WTO by China, Norway, Switzerland, and Turkey. WTO noted that US trade policy must come into compliance with the world trade rules. China, in a statement, said that the US must respect the ruling and correct its policies "as soon as possible".

Switzerland's secretariat for economic affairs said the WTO report suggests nations can protect security interests "provided they meet certain minimum requirements".

Do not impose 'at a time of war': WTO

WTO rebuffed US' national security argument, and instead, said that these duties should not be imposed "at a time of war or another emergency," according to reports. The US, although, noted that it will stand by its tariffs. The US "strongly rejects" the WTO's ruling and will not remove the measure, assistant US trade representative Adam Hodge said at a briefing. "The United States has held the clear and unequivocal position, for over 70 years, that issues of national security cannot be reviewed in WTO dispute settlement and the WTO has no authority to second guess the ability of a WTO member to respond to a wide range of threats to its security," he furthermore noted. 

"The Biden administration is committed to preserving US national security by ensuring the long-term viability of our steel and aluminum industries," US trade representative Adam Hodge said. It only reinforces the "need to fundamentally reform the WTO dispute settlement system," he continued.