The US Court of International Trade recently granted judgment in favour of an importer of steel from Turkey, ruling that there are limits on the president's power to impose tariffs for national security purposes. The importer had argued that the president's proclamation of a 50% tariff on Turkish steel failed to follow the procedures required by the animating statute and violated the importer's constitutional rights.
The US Court of International Trade recently denied the Trump administration's motion to dismiss a lawsuit brought by an importer challenging the government's use of a Cold War-era trade law to double national security tariffs on steel imports from Turkey. Transpacific Steel LLC had filed the lawsuit before the trade court in January 2019, arguing that the increase in tariffs was unlawful under the statute and violated the due process and equal protection requirements under the Constitution.
Throughout the past few months, the United States and China have levied new tariffs, increased existing tariffs and imposed ever-higher retaliatory tariffs. Now, nearly all of the two countries' enormous bilateral trade is subject to double-digit tariffs. In this era of uncertainty, company executives understand that due diligence must be based on a fulsome understanding of the threat that lies ahead. As such, corporate leaders must take proper pre-emptive action and enlist expert legal advice.
The United States and Mexico recently announced an agreement regarding key issues that have been the focus of trilateral discussions between the United States, Mexico and Canada for over one year. Although no text is yet available, the Office of the United States Trade Representative has released fact sheets addressing certain aspects of the preliminary agreement in principle.
Now that President Trump has made his determination on the tariffs to be applied as a result of the Section 232 investigations of certain imports of steel and aluminium products, boardrooms around the globe are pondering the short and long-term implications for their corporate bottom lines. Section 232 investigations have been rare and thus little legal precedent is available for guidance. That said, there are 10 questions worth considering.
The Commerce Department recently released its redacted public version of the Section 232 reports on the effects of imports of steel and aluminium on national security. Both the steel and aluminium reports provide a range of options for the president to consider in restricting imports of aluminium and steel products. This news is expected to trigger swift and pronounced reactions from trading partners and affected US downstream industries.