Trade Cases
Leibowitz Responds to Trade Question
Written by John Packard
July 2, 2017
Steel Market Update received a question from a large service center group regarding the use of the Section 232 process on steel and whether the due diligence being done now could be used “down the road” and applied against another steel product. Here is the question we received and the response from trade attorney Lewis Leibowitz:
Question: “Let’s say they announce tariffs/quotas on flat roll and energy tubulars, which the market thinks is likely. If there were a surge of SBQ bar (or anything not addressed this summer) 1-2 years from now, could the government act immediately because the Section 232 process has already been done, or would they have to start the process all over again?
Leibowitz Response: “A very good question. The statute provides for a determination by Commerce concerning the impact of imports on national security and recommendations on action. The president must determine within 90 days after receiving the report what action to take. The action can consist of a decision to negotiate agreements limiting imports with other countries. If so, the president must try to negotiate such agreements within 180 days. If the negotiations are not successful, the president is authorized by the statute to take such further action to address the national security threat.
“Significantly, the statute provides no other authority for the president to adjust the relief, such as by adding products or extending the period of relief. Taken at face value, this suggests that the president is not authorized to take additional action without a new 232 report. But there could be arguments to the contrary if, for example, a product was found to affect the national security, but the president decides not to take action right away. To my knowledge, no U.S. court has decided the question.”
John Packard
Read more from John PackardLatest in Trade Cases
Price on trade: What a difference a year makes!
As everyone surely knows by now, the SMU Steel Summit starts on Monday in Atlanta, Ga. So, this is a great opportunity to reflect on how much has changed since the 2024 Summit. Certainly, no one could have imagined the wholesale and transformative changes to U.S. and global trade policy.
Canadian steelmakers call for protection after US adds derivatives to S232
The Canadian Steel Producers Association expressed dismay upon the news that the Trump administration had added over 400 products to the list of derivative products covered by the 50% Section 232 tariffs on steel and aluminum.
China opens WTO dispute with Canada over steel, aluminum
China has requested dispute consultations with Canada at the WTO about Canadian measures on Chinese steel and aluminum imports.
Inclusion requests result in 400+ additions to S232’s derivatives list
The Commerce Department has added over 400 HTS codes to the list of steel and aluminum derivative products covered under the Section 232 tariffs.
Leibowitz on Trade: The New World Orders
The question of the new world order was on many minds last week when I spoke on another SMU Community Chat. The short answer is that nobody knows in detail what the effects of all the economic and geopolitical developments will be.