WTO has ruled that the US has violated international trading rules when it imposed tariffs of up to 30% on steel imports last year. The case was brought to the dispute settlement body by the European Union, Japan, South Korea, China, Switzerland, Norway, New Zealand and Brazil. The decision of the body briefly stated the fact that under WTO rules, countries can extend temporary protection to industries hit by
import competition, but only under strict conditions. The exemptions of 295 products as of last week was not enough to alter the decision of the settlement body. The US holds the right to make a final appeal till the end of this year, yet it is very likely that it will ultimately end up with a WTO ruling that it must end the steel tariffs or face sanctions in the vicinity of USD 4 billion.
