Reciprocal Duties of USA: Is it Consistent with Domestic and International Law?

The President of the USA, Mr. Donald J. Trump, in his second term, announced additional tariffs as ‘reciprocal tariffs’ to many countries starting April 2025. The reason cited was the growing trade imbalance for the USA. This paper examines international trade law, with particular emphasis on the binding commitments of the United States of America (USA) under the World Trade Organization (WTO) framework vis-à-vis the reciprocal duties. It focuses on three key actions undertaken by the United States: (a) the imposition of tariffs on steel and aluminium imports pursuant to Section 232 of the Trade Expansion Act of 1962, which authorises the U.S. executive to restrict imports considered a threat to national security; (b) reciprocal tariffs imposed under the International Emergency Economic Powers Act (IEEPA) and (c) additional duties on Canada and Mexico despite having a free trade agreement under the United States-Mexico-Canada Agreement (USMCA). The paper finds that the USA’s actions are inconsistent with its international commitments in the WTO. This paper also evaluates if the US President has powers under IEEPA to impose reciprocal tariffs, an issue which is being discussed in the US Supreme Court now.