On December 9, 2022, The World Trade Organization (WTO) issued four rulings stating the violation of Articles I, II, XI and XXI of the General Agreement on Tariffs and Trade (GATT) in U.S. Section 232 steel and aluminum tariffs. The three person WTO panel stated the tariffs enforced in 2018 were unnecessary because the U.S. was not facing international emergencies or war. The Section 232 tariffs were implemented by President Donald Trump and the Trump administration.
U.S. DISAPPROVES OF SECTION 232 RULINGS FOR THREE REASONS
- Adverse economic welfare impact
- Global excess supply of steel and aluminum
- Domestic steel and aluminum displacement
Assistant U.S. Trade Representative, Adam Hodge, issued a statement in response to the rulings, “The United States strongly rejects the flawed interpretation and conclusions in the World Trade Organization (WTO) Panel reports released today regarding challenges to the United States’ Section 232 measures on steel and aluminum brought by China and others. The Biden Administration is committed to preserving U.S. national security by ensuring the long-term viability of our steel and aluminum industries, and we do not intend to remove the Section 232 duties because of these disputes.”
The rulings were brought to the attention of the WTO by China, Switzerland, Norway and Turkey, all stating violations of the GATT. The U.S. contests the rulings as Section 232 tariffs remain in place.
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