Trump Tariffs To Face WTO if Complaints Brought Forward

President Donald Trump’s announcement last week of a 25 percent tariff on U.S. imports of steel and 10 percent on aluminum caused a global outcry.



The following sets out how Washington might try to justify the tariffs at the World Trade Organization, which is supposed to police agreed free trade rules, and how the WTO might address the issue.

The tariffs announced by Trump, which have not been officially notified to the World Trade Organization, put a tax on steel and aluminum coming into the United States from all over the world.

Even though the United States has declined to declare the tariffs at the WTO, they can still come under its jurisdiction if countries affected raise complaints.

Although Trump has said some countries such as Canada and Mexico will get exemptions, the tariffs threaten to leave the rest of the world facing oversupply of steel and aluminum.

via Reuters

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Alfonso Esparza

Alfonso Esparza

Senior Currency Analyst at Market Pulse
Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He has been published by The MarketWatch, Reuters, the Wall Street Journal and The Globe and Mail, and he also appears regularly as a guest commentator on networks including Bloomberg and BNN. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.
Alfonso Esparza