USTR Blasts EU, China, Canada and Mexico for Retaliatory Tariffs

U.S. Trade Representative Robert Lighthizer released a lengthy criticism of retaliatory tariffs, saying U.S. tariffs on aluminum and steel are "wholly legitimate and fully justified" and that other countries "concocted a groundless legal theory" that the U.S. tariffs are safeguards rather than national security-based. "Faced with massive excess capacity that puts the very future of our steel and aluminum industries at risk, President [Donald] Trump took certain measures that he deemed essential to the national security of the United States," Lighthizer said in the June 26 statement. "These measures were implemented only after long and careful analysis, and after all trading partners had the chance to address our concerns."

The World Trade Organization has no jurisdiction on trade actions justified by national security, but if a country implements tariffs to protect its domestic industry, other countries may impose tariffs of equal cost in response, after a period of notification at the WTO. "These retaliatory tariffs underscore the complete hypocrisy that governs so much of the global trading system," he continued. "For months, the EU, China, and others have criticized the trade policy of the United States, while claiming to champion the WTO. But their recent tariffs prove that they simply ignore WTO rules whenever doing so is convenient."

He said the European Union and additional countries that imposed retaliatory tariffs are acting irresponsibly. “Rather than work with the United States, they have retaliated with tariffs designed to punish U.S. companies and workers," he said. “When the EU and others falsely assert the U.S. steel and aluminum duties are safeguard measures, and impose retaliatory duties under this pretense, they do great damage to the multilateral trading system. Indeed, they show that they are willing to distort WTO rules to mean whatever they want, whenever they want." He ended the statement by saying the U.S. "will take all necessary actions under both U.S. law and international rules to protect its interests.”