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To determine whether the USA 25% tariff on steel and aluminum qualifies as a safeguard duty under trade remedy measures, we must examine the concept of “safeguard duty” and the context of USA trade policies.
What Is a Safeguard Duty?
A safeguard duty is a temporary trade remedy measure imposed to restrict imports of a product when there is a sudden surge in imports that causes or threatens to cause serious injury to the domestic industry. Under the World Trade Organization (WTO) rules, a safeguard measure must:
- Be based on an investigation demonstrating a sharp increase in imports and significant harm to the domestic industry.
- Be applied in a non-discriminatory manner across all exporting countries (principle of non-discrimination).
- Be subject to conditions, including a maximum duration of four years (extendable), and may require compensation to affected countries.
The USA 25% Tariff on Steel and Aluminum
The USA tariffs on steel (25%) and aluminum (initially 10%, later adjusted in some cases) were first introduced in 2018 under President Donald Trump and reaffirmed in recent policies (2025). However, these tariffs do not fully align with the traditional definition of “safeguard duties.”
- Legal Basis: The USA did not invoke the WTO Safeguard Agreement but instead relied on Section 232 of the Trade Expansion Act of 1962, which allows the USA to impose tariffs or import restrictions if the Department of Commerce determines that imports threaten national security. In the case of steel and aluminum, the USA cited national security concerns rather than economic harm from a surge in imports.
- Procedure: WTO safeguard measures require a transparent investigation to prove injury to the domestic industry and a causal link to increased imports. In contrast, tariffs under Section 232 do not require proof of economic harm but rather focus on national security, with the final decision being more political (approved by the President).
- Discrimination: WTO safeguard duties must apply equally to all exporting countries. However, the USA imposed varying tariff levels for different countries—for instance, Canada and Mexico were exempted after negotiations, while countries like Vietnam remained subject to the tariff. This selective application contradicts the non-discriminatory principle of safeguard measures.
- Objective: The primary goal of safeguard duties is to protect domestic industries from temporary surges in imports. In contrast, the USA tariffs under Section 232 have broader objectives, including national security protection and trade deficit reduction, rather than merely addressing increased imports.
Conclusion
The USA 25% tariff on steel and aluminum does not qualify as a safeguard duty under the WTO’s trade remedy framework. Instead, it is a Section 232 measure, justified on national security grounds rather than protecting domestic industries from a surge in imports.
While there are similarities (such as protecting domestic industries), the legal basis, procedure, and implementation method distinguish it from traditional safeguard duties.
To protect their legitimate interests, manufacturers and exporters should familiarize themselves with the procedure and actively contact Vietnamese law firms specializing in anti-dumping and trade remedy for timely assistance.
ASL Law is a leading full-service and independent Vietnamese law firm made up of experienced and talented lawyers. ASL Law is ranked as the top tier Law Firm in Vietnam by Legal500, Asia Law, WTR, and Asia Business Law Journal. Based in both Hanoi and Ho Chi Minh City in Vietnam, the firm’s main purpose is to provide the most practical, efficient and lawful advice to its domestic and international clients. If we can be of assistance, please email to [email protected].
ASL LAW is the top-tier Vietnam law firm for Anti-dumping & countervailing. If you need any advice, please contact us for further information or collaboration.
