U.S. Invokes National Security in Defense of Steel Tariffs Amid WTO Dispute with India

The United States argued before the World Trade Organisation (WTO) that the Trump administration's tariffs on steel and aluminium imports were in the interests of national security and could not be construed as being safeguard measures.

This is a clarification from Washington following India's formal April 11 request to the WTO for consultations with the US regarding the increase in tariffs. India has invoked the WTO's Safeguards Agreement in its plea, stating that the measures, regardless of their characterization, are within the ambit of safeguard measures.

India also noted that the US had failed to adhere to procedural commitments, including notification of the WTO's Committee on Safeguards according to the applicable terms of the Safeguards Agreement, in imposing the tariffs.

In its formal response filed with the WTO on April 17, the United States stated: "The US observes that the basis for India's request for consultations under Article 12.3 of the Agreement on Safeguards is that the tariffs are safeguard measures.". The President had put the tariffs on steel and aluminum under Section 232, under which the President found that tariffs are required to reorient imports of steel and aluminum articles which are likely to damage the national security of the US.

The US has said that Section 232 is a legal vehicle for national security actions, and not for protectionist trade instruments. Washington clarified that the increases in tariffs come under the exceptions on security under the General Agreement on Tariffs and Trade (GATT) 1994.

The US further emphasized that such tariffs were not imposed under the Trade Act of 1974, which contains the legislative framework for safeguard measures imposed to save domestic industries from sudden increases in imports.

The United States is not taking these measures under the safeguards/emergency action provision. These measures are not safeguard measures and, as such, there is no basis to hold consultations under the Agreement on Safeguards regarding these measures," the US explained in its submission.