Switzerland successfully sues the US over steel tariffs

The WTO mediators condemn the USA for its import tariffs on steel and aluminum in 2018. The author was the government around former President Donald Trump.

Hot steel plates are pressed in a steel mill in the Netherlands.

Yves Herman / Reuters

(dpa) The import tariffs on steel and aluminum imposed by the USA in 2018 were illegal according to the verdict of dispute arbitrators at the World Trade Organization (WTO). According to the judgment published on Friday evening, the government of then President Donald Trump violated WTO requirements.

Plaintiffs were China, Norway, Switzerland and Turkey. The EU had also initially filed a lawsuit against the USA at the WTO because of the tariffs, but then let the case rest.

At the time, the United States had imposed tariffs of up to 25 percent. They justified this by saying that imports threatened the country’s national security. Because according to the rules of the WTO and its predecessor GATT, countries have the right to suspend trade concessions such as duty-free imports without further justification to protect their national security.

The judges rejected that. It must be examined objectively whether a government’s reasons for imposing measures to protect national security are covered by WTO rules. This was not the case.

Countries that win WTO dispute settlement are entitled to compensation to the extent that they have been harmed by an objected measure. However, the US can formally appeal. However, because Washington has been blocking the appointment of new appointments to the Appellate Body for years, appointment negotiations cannot take place at the moment. The case remains unsolved until then.

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