Trade Cases
WTO panel rules in favor of US in 232 tariff quarrel with Turkey
Written by Laura Miller
December 19, 2023
A World Trade Organization (WTO) dispute panel has ruled in favor of the US in a case regarding retaliatory tariffs imposed by Turkey in response to Section 232 tariffs on steel and aluminum.
In 2018, the Trump Administration placed Section 232 tariffs of 25% on steel and 10% on aluminum imports for national security reasons. In response, Turkey put retaliatory tariffs on coal, paper, walnuts/almonds, tobacco, unprocessed rice, whiskey, automobiles, cosmetics, machinery equipment, and petrochemical products from the US, according to Reuters.
The WTO panel’s Dec. 19 ruling recognized the Section 232 levies are a security measure enacted by the US and that Turkey is violating WTO rules by imposing “retaliatory tariffs disguised as safeguard measures,” Sam Michel, spokesperson for the office of US Trade Representative Katherine Tai, said in a statement.
“The WTO does not have the authority to second-guess a WTO member’s response to threats to its security, and WTO reform must ensure that issues of national security cannot be reviewed in WTO dispute settlement,” Michel said.
The panel has recommended that Turkey “bring its WTO-inconsistent measure into conformity with its obligations under” the General Agreement on Tariffs and Trade 1994.
Additionally, non-market excess capacity from China, Turkey, and others “is an existential threat to market-oriented steel and aluminum sectors and, through the effects on imports, a threat to US national security, including by eroding US steel and aluminum manufacturing capacity,” Michel said.
He added that the WTO has been ineffective at dealing with non-market excess capacity.

Laura Miller
Read more from Laura MillerLatest in Trade Cases

Leibowitz: Renewed trade war with China over rare earths
On Oct.10, President Trump announced major increases in tariffs on Chinese goods. The trigger was a new regime of export controls on rare earth metals and products using those elements, including magnets, capital equipment, and catalysts for catalytic converters in cars and trucks.

Industry piles on new Section 232 steel derivative inclusion requests
The Department of Commerce received 97 submissions from producers, manufacturers, and groups seeking Section 232 tariff coverage for steel and aluminum derivative products.

Price on Trade: New EU steel tariffs don’t mean the US should weaken its stance
Any steel imports into the EU that exceed the new, lower quota level would be subject to a 50% tariff, which represents a major increase from the EU’s current 25% out-of-quota tariff. This move would largely align the EU’s steel tariff rate with Canada and the United States.

Global steel forum sets 2026 framework deadline as US ups pressure on excess capacity
Global steelmakers sounded the alarm Friday over the deepening excess steelmaking capacity crisis. Ministers at the Global Forum on Steel Excess Capacity (GFSEC) in Gqeberha, South Africa, pledged to...

CRU: China’s indirect steel exports find new destination markets
The boom in China’s direct steel exports has not stopped this year, even with a rise in protectionist measures globally. The increase is driven by...