Government/Policy
June 27, 2021
Leibowitz on Trade: Section 232—Past and Future
Written by Lewis Leibowitz
Readers asked me to discuss Section 232 and its possible future. Steel and aluminum tariffs have been around since 2018, not to mention other investigations on components of electric transformers made with electrical steel, autos and auto parts, and vanadium. I think that, under applicable law, certain of these cases have been resolved. I explain here why I think so and what might happen next.
A little history is in order first. The concept of limiting imports for national security reasons goes back to the First World War. In its first iteration, national security was a wartime policy. Congress was concerned that domestic producers could strengthen an enemy by selling goods or services and by buying such goods from Germany and its allies. A few months after war was declared in 1917, Congress passed the Trading with the Enemy Act (TWTA), prohibiting any American from doing business with an enterprise located in a country with which the United States was at war. The president was authorized to permit trading, but without a license no trade was lawful.

