232 investigation

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Last week, the Department of Commerce (the “Department”) initiated two new Section 232 proceedings on mobile cranes and electrical transformer components. Section 232, a previously seldom used section of the Trade Expansion Act of 1962, is used to investigate the impact of certain imports on national security and provide relief if those imports threaten to impair U.S. national security. During the Trump Administration, Section 232 has been used to investigate imports of steel, aluminum, automobiles (and parts), titanium sponge, and uranium. Under Section 232, President Trump has imposed tariffs on steel and aluminum.

The investigation on electrical transformer components will cover laminations for stacked cores for incorporation into transformers, stacked and wound cores for incorporation into transformers, electrical transformers, and transformer regulators. Transformers are an essential part of the U.S. energy infrastructure. The Department’s press release notes that “[a]n assured domestic supply of these products enables the United States to respond to large power disruptions affecting civilian populations, critical infrastructure, and U.S. defense industrial production capabilities.” Several members of Congress had previously urged the Administration to initiate proceedings.

The investigation on mobile cranes follows a petition filed by domestic producer The Manitowoc Company, Inc. (“Manitowoc”), according to the Department’s press release. That petition, filed in December, alleges that “increased …
Continue Reading Commerce Launches 232 Investigations on Transformer Components and Mobile Cranes

On Friday, February 16, 2018, Secretary Ross released public versions of the U.S. Department of Commerce’s reports concerning the agency’s section 232 investigations into the impact on national security of steel and aluminum imports. As a result of its investigations, the Department of Commerce has determined that imports of steel and aluminum “threaten to impair the national security.”

The Secretary’s press release presents the agency’s key findings and lists the agency’s various recommended remedies.  With respect to steel imports, the Department of Commerce recommends three alternative options to the President:

  1. A global tariff of at least 24% on all steel imports from all countries, or
  2. A tariff of at least 53% on all steel imports from 12 countries (Brazil, China, Costa Rica, Egypt, India, Malaysia, Republic of Korea, Russia, South Africa, Thailand, Turkey and Vietnam) with a quota by product on steel imports from all other countries equal to 100% of their 2017 exports to the United States, or
  3. A quota on all steel products from all countries equal to 63% of each country’s 2017 exports to the United States.

With respect to aluminum imports, the Department of Commerce recommends three alternative options to the President:…
Continue Reading Commerce Secretary Releases Steel and Aluminum 232 Reports, Recommends Remedies

Yesterday evening the Commerce Department sent to the White House its findings in the Section 232 national security investigation on steel imports.  The much anticipated report was originally due to be issued last year, but faced several delays.  The President now has the authority to decide whether to accept or reject the Commerce Department’s findings…