The World Trade Organization ruled Friday that the US Section 232 tariffs against steel and aluminum imports “contravened global trading rules.” The three-person panel said that the implication of the tariffs was inconsistent with WTO rules, and recommended the US bring the measures into conformity.
In response, the office of the US Trade Representative said the US does not plan to remove Section 232 tariffs as a result of the ruling.
The case was brought to the WTO by China, Norway, Switzerland and Turkey. Additional cases brought by India Russia are still pending. Brussels suspended the European Union’s case when the US agreed last year to remove tariffs on imports from the EU.
The WTO said the US did not meet the standards for an exemption from global trade rules in cases of national security. The US argument in response was that national security is up to individual countries to determine, not separate trading adjudicators.
The US is expected to appeal the decision, according to news reports.
Nucor released a response late Friday, saying, "For years, the US government has recognized that the WTO dispute settlement system often overreaches in its findings and infringes on U.S. sovereignty. The WTO system has allowed non-market economies like China and other countries to exploit the global trading order by building massive, high-polluting excess capacity at the expense of market-based manufacturers around the world. It is time to fundamentally rethink the global trading system to ensure that it is based on fair trade and environmentally friendly production processes."
In the company release, Leon Topalian, Chair, President and Chief Executive Officer of Nucor Corporation, called for reform of the WTO dispute settlement system.