The US has invoked Article XXI of the GATT 1994 to justify its tariff measures on imports of steel and aluminum. However, the US’ tariff measures are not imposed for the protection of the US “essential security interests” but for economic and trade reasons. They do not satisfy the conditions listed under Article XXI (b) (i) to (iii) and should not be justified by them. They should not be considered as either national security measures or safeguard measures, but as ordinary trade restriction measures that are inconsistent with the WTO rules and the US obligations. A panel or the Appellate Body not only has the jurisdiction to review this dispute, but is also capable of making findings and providing a recommendation. Even if the US has the discretion to impose tariff measures under Article XXI (b), whether it has been acted in good faith, is still subject to the WTO review. As regards the tariff measures, the US has not acted in good faith.

With President Trump’s recent imposition of USD 34 billion in new tariffs on imports from China and China’s prompt retaliation, the US is now in its biggest trade war with China and other countries since the 1930s. President Trump’s policies focusing on threats, trade deficits and bilateral trade, as well as the movement away from the postwar international system, have been historical aberrations since 1945. The US trade diplomacy ought to concentrate on building coalitions and viable proposals for addressing trade issues, including those concerning the World Trade Organization rule-making and dispute resolution. This would help to ensure a rules-based trading system.