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Trump Trade War - AIIS lawyers file petition in SC to strike down Section 232

Steel News - Published on Fri, 19 Apr 2019

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The American Institute for International Steel has taken its legal challenge to end the Section 232 tariffs on steel and aluminum to the highest court in the US, with the steel trade organization filing a petition Monday with the Supreme Court. Law360 reported that lawyers working on behalf of the American Institute for International Steel have petitioned the US Supreme Court to hear a case to strike down Section 232 of the Trade Expansion Act of 1962, Although the case has little chance of succeeding, striking down Section 232 of the Trade Expansion Act would undermine the US government's ability to impose a wide range of import tariffs, including currently existing restrictions on steel and aluminum.

In a March ruling, a US Court of International Trade panel expressed some concerns about the broad authority granted to US President Donald Trump under Section 232 but said it was bound by a 1970s-era Supreme Court decision to uphold the statute. The AIIS filed a lawsuit challenging the constitutionality of the Section 232 tariffs with the CIT in June 2018. Relying on a 1976 Section 232 case involving oil imports, known as Federal Energy Administration v. Algonquin, the CIT ruled "The president's determination of whether to [impose Section 232 tariffs] is not qualified by any language or standard, establishing that it is left to his discretion. Accordingly, the president's determination as to the form of remedial action is a matter in the judgment of the president.”

While he did not issue a dissent, CIT Judge Gary Katzman filed an opinion dubitante, suggesting that the laws governing Section 232 may need to be revisited, stating: "If the delegation permitted by Section 232, as now revealed, does not constitute excessive delegation in violation of the constitution, what would?"

Trump initiated Section 232 investigations into steel and aluminum imports in 2017, which ultimately resulted in the US applying a 25% tariff on steel and 10% tariff on aluminum in March 2018.

Section 232 of the Trade Expansion Act gives the executive branch the authority to limit imports on national security grounds. The Trump administration has used the act to place restrictions and quotas on steel and aluminum imports and President Donald Trump is currently deciding whether to impose tariffs on vehicles, auto parts and uranium.

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Posted By : Sanju Moirangthem on Fri, 19 Apr 2019
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