National Security Related Import Restrictions 

Once considered a narrowly focused national security-related law, Section 232 of the Trade Expansion Act of 1962 (Section 232 or 232) has, since the first Trump Administration, emerged as a significant tool for protecting US industries from imports—one that is not tempered by input from an independent federal agency like the ITC. Section 232 authorizes the Secretary of Commerce, consulting with the Secretary of Defense, to conduct comprehensive investigations to determine the effects of imports of any article on the national security of the United States and authorizes the President to impose any necessary adjustment to imports, which can take virtually any form.

President Trump has initiated investigations or taken action in proceedings involving ten separate industries since taking office in January, including steel and aluminum, autos. copper, imported processed critical minerals and their derivative products;   imports of timber and lumber;   imports of medium-duty and heavy-duty trucks, including their parts;   semiconductors and semiconductor manufacturing equipment, and their derivative products;  pharmaceutical imports;  and, aircraft and engines imports.  

Process

Any interested party or the head of any federal department or agency may request an investigation to determine the effects of imports on national security, which the US Department of Commerce must immediately initiate. 

The Commerce Department may also self-initiate an investigation. The Commerce Department must immediately notify and consult with the US Department of Defense regarding the methodological and policy questions raised.  The Commerce Department must also seek information and advice from and consult with other officers, as appropriate. Finally, the Commerce Department must hold public hearings or otherwise afford interested parties an opportunity to present information and advice relevant to such investigation, as appropriate and after reasonable notice.

The Commerce Department must submit a report to the President of the United States no later than 270 days after the investigation is initiated detailing its findings on the effect of imports of the article(s) under investigation on the national security of the United States, specifically whether such articles are being imported into the United States in such quantities or under such circumstances as to threaten to impair the national security; and, recommendations for action or inaction.

Remedy 

If the President concurs with the Commerce Department’s report, the President must, within 90 days, determine the nature and duration of the action that must be taken to adjust the imports of the article and its derivatives so that such imports will not threaten to impair national security.

The President must then take action within 15 days and report to Congress within 30 days.

As such, the President has broad discretion in applying a remedy, which has included  consultations, agreements, monitoring, working groups, tariffs and tariff-rate quotas.

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