Status: 09.12.2022 21:43
The punitive tariffs on steel and aluminum introduced by the Trump administration in 2018 are illegal according to a decision by the World Trade Organization. But the current US government under Biden probably doesn’t want to abolish it either.
The punitive tariffs imposed by the US on steel and aluminum imports in 2018 violate world trade rules. This was decided by an arbitral tribunal of the World Trade Organization (WTO). China, Norway, Switzerland and Turkey had sued against the measure introduced by the then US government under Donald Trump. The EU had initially filed a lawsuit, but then let the case rest.
The United States imposes tariffs of up to 25 percent on imports of steel and aluminum – because the imports are said to threaten its national security. Under WTO rules, countries can suspend duty-free imports without further justification to protect national security. The US government was therefore of the opinion that the Arbitration Court of the WTO should not have dealt with the case at all. The WTO judges saw things differently: It must be objectively examined whether the reasons why a government imposes measures to protect national security are covered by the WTO rules. This was not the case.
US blocks Appellate Body
The plaintiff countries are now entitled to compensation. The USA could formally appeal against the decision – however, for years they have been blocking the appointment of new members on the Appellate Body, so that appointment negotiations cannot take place at all at the moment. Appeals then remain unresolved.
The current US administration under Joe Biden has criticized the WTO decision. The organization is not authorized to question the national security decisions of its members. However, the US has already reached new agreements with the EU, Japan and Great Britain. After that, the tariffs will largely disappear and be replaced by import quotas. In return, the retaliatory tariffs against US imports were abolished.
Despite the WTO decision, the US government does not intend to adjust its tariffs, reports the Reuters news agency. In a first reaction, the Chinese government said it hoped the US would respect the decision, adjust its tariffs as soon as possible and cooperate with China and other WTO members.