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US Court of International Trade finds Section 232 Turkish Steel Duties Unconstitutional

Steel News - Published on Wed, 15 Jul 2020

Image Source: USCIT Section 232 Duties
US Court of International Trade ruled that US President Mr Donald Trump’s decision to double national security tariffs on Turkish steel is unlawful, because it was procedurally deficient and singles out importers in violation of the constitutional guarantee of equal protection. The Trump administration didn’t follow these procedures by expanding the Turkish steel tariffs well more than 90 days after Commerce’s original steel report. US CIT said “National security is dependent on sensitive and ever-changing dynamics; the temporal restrictions on the President’s power to take action pursuant to a report and recommendation by the Secretary are not a mere directory guideline, but a restriction that requires strict adherence. This procedure ensures the president has the most up-to-date national security guidance. The president has no authority to modify preexisting Section 232 tariffs outside the stated timelines.”

US importer Transpacific Steel LLC challenged this move, seeking refund of a purported USD 2.8 million in additional tariffs it had to pay.

In March 2018 Trump imposed 25% tariffs on steel imports from around the world using his authority under Section 232 of the Trade Expansion Act of 1962. This law allows the president to impose tariffs or other restrictions on imports if he determines these goods pose a threat to national security. The president argued that steel imports were threatening to weaken the US steel industry to the point where it wouldn’t be able to meet production requirements to adequately respond to a national emergency. In August of that year, in Presidential Proclamation 9772, Trump announced he was doubling the Section 232 tariffs to 50% on steel from Turkey.

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Posted By : Yogender Pancholi on Wed, 15 Jul 2020
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