In a separate filing, the U.S. asked the WTO to review those nations that retaliated against its duties. The move sets the stage for a showdown at the Geneva-based trade arbiter that some fear could either lead to a U.S. exit or a flood of new protectionist measures invoking what has until now been a rarely used national security loophole in global trade rules. The U.S. has said the tariffs on imported steel and aluminum imposed earlier this year are allowed under the WTO’s national security exemption, which permits governments to take “any action which it considers necessary for the protection of its essential security interests.” This has drawn the ire of those affected, many of which are close American allies, such as the European Union and Canada.
