WTO rules against Turkiye in dispute with the US over Section 232 duties

A panel of experts at the World Trade Organization (WTO) has ruled that Turkiye should eliminate additional tariffs imposed in response to US steel and aluminum tariffs under Section 232. Reuters informs about it.

Turkish measures were found to be inconsistent with WTO policy.

«The group of experts recommends that Turkiye bring its WTO-contrary measures into compliance with its obligations,» the report said.

Turkiye imposed duties on a number of US goods after the US imposed tariffs of 25% on steel imports and 10% on aluminum imports in the spring of 2018. The country appealed to Section 232 of the 1962 law, which allows the president to restrict imports if it threatens national security.

In 2018, the United States initiated a dispute settlement procedure against Turkey, as well as the EU, China, and other countries regarding their own retaliatory measures.

The US side welcomed the experts’ decision.

«The United States is pleased with the published report of the WTO panel, which finds that the United States’ Section 232 actions on steel and aluminum are safeguard measures and that Turkey violated World Trade Organization rules by imposing retaliatory tariffs disguised as safeguard measures,» it is stated in a statement by Sam Michel, a spokesman for the US Trade Representative.

For the second time, a WTO panel has sided with the United States in a dispute over duties imposed by another country in response to Section 232 tariffs. The first case involving China was resolved in August 2023.

As GMK Center reported earlier, the EU has extended the suspension of tariffs on US products under Section 232 until March 31, 2025. In exchange, the United States retains the possibility of duty-free imports from the EU under the tariff-rate quota (TRQ) system introduced in January 2022. In addition, the US side agreed to provide further exemptions for EU exporters.