The World Trade Organisation (WTO)İsaid today thatİcontroversial tariffs applied by the US on steel imports stood in violation of international trade rules.

The decision will place considerable pressure on the Washington administration to withdraw theİmeasures,İwhich were designed to protect the ailing US steel industry.

In ruling the import duties illegal, the WTO's Appellate Body, the ogranisation'sİhighest trade court, upheld the central findings of an earlier hearing by the WTO in July.

In light of theİdecision, US President George W Bush faces the choice of backing down over the anti-dumping duties orİfacing retaliation from the European Union.

The EU has already threatened to hit back withİ$2.2 billion in duties on US goods.

Pascal Lamy, the EU trade commissioner, last week warned that if the US did not drop the steel tariffs, retaliation of up to $2.2bn of punitive duties on US goods would be "a racing certainty in mid-December".

The retaliatory sanctions are understood to have been formulated with the US presidential elections in mindİand have been calculated to hurt states crucial toİPresident Bush's re-election prospects.

Apart from the EU, Japan, Brazil, South Korea and Switzerland will also welcome the WTO decision, having each protested against the behaviour of the US since it imposed the duties, of up to 30 per cent,İin 2002.

US manufacturers have also criticised the tariffs, blaming them for artificially-highİsteel prices.