Section 232

On May 17, 2019, after numerous rounds of negotiations, the United States, Canada, and Mexico issued formal statements on lifting duties on Section 232 steel and aluminum products. While Canada and the U.S. explicitly stated that their respective tariffs would be lifted within the next two days, Mexico has yet to announce how quickly their retaliatory tariffs would end.

On March 25, 2019, the Court of International Trade issued its decision in the American Institute for International Steel’s appeal on the institution of Section 232 tariffs on steel products.  The CIT found that the Section 232 tariffs were constitutional and thus this decision results in the continuation of these tariffs for the foreseeable future.

On Sunday, February 17, 2019, the U.S. Department of Commerce reportedly submitted its report to the President following its investigation into whether imported cars and parts pose a threat to national security under Section 232 of the Trade Expansion Act of 1962. This investigation was initiated in May 2018 at President Trump’s request.  The report has not been released to the public yet. The administration is required to release any part of the report that does not contain classified information in the Federal Register.

With the government shutdown entering its fourth week and with no end in sight, a number of federal agencies are feeling the pressure. The Department of Commerce and the U.S. International Trade Commission have been effectively shuttered for the past four weeks and recently the Office of the U.S. Trade Representative released a short statement indicating that they had begun furloughing nonessential personnel. A number of other agencies and departments have also had their work affected or completely suspended. Outlined below is a brief analysis the current shutdown is having on those federal agencies which are critical to imports, exports, and international trade.

On August 29, 2018, President Trump issued proclamations announcing that companies will be able to request exclusions from the Section 232 quantitative limitations (i.e., quotas) for certain steel and aluminum products imported in to the United States.  In particular, this affects steel and aluminum imports from Argentina, Brazil, and South Korea.

Nowadays, the only thing that remains certain in the industry of domestic and global trade is the unpredictability of influential decisions made by the U.S. government and how those decisions will impact trading laws and regulations.

There has been much to say regarding Section 232 and related tariff concerns. On Husch Blackwell’s TMT Industry Insider…