The World Trade Organization (WTO) ruled that U.S. President Donald Trump’s tariffs on more than $400 billion in Chinese goods, including fasteners, violate international trade regulations.

In 2018, the Trump administration placed 10% tariffs on bolts, screws and other fasteners (HTS subheadings 7318.11.00 to 7318.29.00) manufactured in China and on all Chinese iron and steel nuts (HTS subheading 7318.16.00).  Those tariffs were hiked to 25% and 15%, respectively the following year.

The tariffs were issued under Section 301 of the Trade Act of 1974, which allows the White House to fight foreign trade policy it deems “unreasonable or discriminatory and burdens or restricts United States commerce.”

However, a panel of three WTO adjudicators ruled “that the U.S. was unable to prove its tariffs on Chinese products were necessary to level the global trade playing field,” according to The Hill.  While the WTO can’t force the U.S. to rescind the tariffs, the panel concluded the Trump administration “has not met its burden of demonstrating that the measures are provisionally justified.”

The Trump administration criticized the ruling.

“The United States must be allowed to defend itself against unfair trade practices, and the Trump Administration will not let China use the WTO to take advantage of American workers, businesses, farmers, and ranchers,” stated U.S. Trade Representative Robert Lighthizer.

American businesses and consumers are bearing the financial brunt of Trump’s strategy to use import tariffs to protect and boost U.S. manufacturers, leading to job losses and higher prices, according to a Federal Reserve study published in December.

U.S. Federal Reserve research shows that U.S. tariffs on Chinese industrial components and materials — which largely won’t be lifted by the new deal that was signed in January — are “proving especially damaging to American manufacturing competitiveness and jobs,” Reuters reports.

“U.S. tariffs continue to be almost entirely borne by U.S. firms and consumers,” stated Mary Amiti, an economist at the Federal Reserve Bank of New York.


The Office of the U.S. Trade Representative (USTR) list includes:
7318.11.00 – Iron or steel, coach screws
7318.12.00 – Iron or steel, wood screws (o/than coach screws)
7318.13.00 – Iron or steel, screw hooks and screw rings
7318.14.10 – Iron or steel, self-tapping screws, w/shanks or threads less than 6 mm in diameter
7318.14.50 – Iron or steel, self-tapping screws, w/shanks or threads 6 mm or more in diameter
7318.15.20 – Iron or steel, bolts and bolts & their nuts or washers, imported in the same shipment
7318.15.40 – Iron or steel, machine screws (o/than cap screws), 9.5 mm or more in length and 3.2 mm in diameter
7318.15.50 – Iron or steel, threaded studs
7318.15.60 – Iron or steel, screws and bolts, nesoi, having shanks or threads less than 6 mm in diameter
7318.15.80 – Iron or steel, screws and bolts, nesoi, having shanks or threads 6 mm or more in diameter
7318.19.00 – Iron or steel, threaded articles similar to screws, bolts, nuts, coach screws & screw hooks, nesoi
7318.21.00 – Iron or steel, spring washers and other lock washers
7318.22.00 – Iron or steel, washers (o/than spring washers and other lock washers)
7318.23.00 – Iron or steel, rivets
7318.24.00 – Iron or steel, cotters and cotter pins
7318.29.00 – Iron or steel, nonthreaded articles similar to rivets, cotters, cotter pins, washers and spring washers