Geneva, May 12 — The World Trade Organisation's dispute settlement panel issued a ruling Tuesday finding that US steel and aluminium tariffs imposed under Section 232 national security provisions violate core WTO obligations, delivering a significant legal blow to the Trump administration's trade policy as it simultaneously fights court challenges at home.

The ruling, anticipated by trade lawyers following oral arguments earlier this year, determined that the United States failed to demonstrate a legitimate national security justification under Article XXI of the General Agreement on Tariffs and Trade, the narrow exception that Washington has long argued shields its tariff measures from WTO scrutiny. The panel's findings mirror earlier rulings against similar measures that the US has consistently refused to implement.

The decision arrives at a particularly sensitive moment. With US federal courts this week continuing to strike down presidential tariff authority — raising questions about the legal foundations of the administration's broader trade agenda — the WTO ruling compounds the legal and economic pressure facing the White House. Markets in Europe and Asia responded cautiously, with steel futures ticking lower in early trading in Frankfurt and Tokyo.

European Commission trade spokesperson Olof Gill welcomed the panel's conclusions, saying Brussels would 'carefully assess next steps including potential countermeasures,' while stressing the EU's preference for a negotiated resolution. South Korea's Ministry of Trade also issued a statement calling on Washington to bring its measures into conformity with international obligations.

The Trump administration is widely expected to appeal the ruling to the WTO Appellate Body, a process that has been effectively paralysed since Washington blocked the appointment of new judges — meaning the appeal could be suspended indefinitely. Critics note this strategy has allowed the US to maintain tariffs despite losing at the panel level repeatedly. Consumer advocates argue that as long as tariffs remain in place through legal manoeuvring, prices for steel-dependent goods will not fall regardless of court victories.