WTO judges set a high bar for what tariffs can be justified by citing "national security."
, the implications are likely going to be much wider since it's the first time the WTO has ruled on the powerful security clause.
But the same definition raises serious questions about whether Trump's tariffs meet such criteria, or whether judges would instead identify them as a protectionist measure, as is argued by the EU, China and others. Although the panel decision has no official precedent value, Bartels said it sets a threshold "that cannot be ignored" by future rulings on national security cases. Significantly, the EU, China and four other countriesagainst Trump's steel and aluminum duties, which are expected to be ruled on in 2020.
Remarkably, the ruling went beyond the required scrutiny in the Russia-Ukraine border dispute and included provisions that could also directly apply to Trump's tariffs, according to Bartels and McDougall: "The panel was conscious of the implication this would have for the steel and aluminum tariffs. They took a tougher line than was necessary," Bartels said.The case is likely to fuel criticism of the WTO coming from the highest level of the U.S. administration.
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