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Updated November 4, 2021
Section 232 of the Trade Expansion Act of 1962
Section 232 allows the President to impose import
confidential or classified material) must be published in the
restrictions based on an investigation and affirmative
Federal Register.
determination by the Department of Commerce
Presidential Action and Notification. If Commerce finds
(Commerce) that certain imports threaten to impair the
in the negative, Commerce informs the President and no
national security. After conducting eight Section 232
further action is required. If Commerce determines in the
investigations, President Trump acted five times, twice
affirmative, the President, upon receipt of the report, has 90
imposing tariffs, declining to act on a sixth finding; another
days to: (1) determine whether he/she concurs with its
investigation found no threat, and one was terminated.
findings; and (2) if so, determine the nature and duration of
President Biden is addressing the Section 232 tariffs placed
the action to be taken to adjust the subject imports. The
by President Trump and has initiated a new investigation .
President may decide to impose tariffs or quotas to offset
Actions under Section 232 have generated debate in
the adverse effect, without any limits on their duration, or
Congress and at the multilateral level in the World Trade
take other action. The President may exclude specific
Organization (WTO). Some in Congress support legislative
products or countries. After a determination, the President
options to amend the congressional delegation of authority.
must implement the action within 15 days, and submit a
Section 232 Process
written statement to Congress explaining the action or
inaction within 30 days (see Figure 1). The President must
Section 232 of the Trade Expansion Act of 1962 (19 U.S.C.
also publish his determination in the Federal Register.
§1862, as amended) allows any department, agency head,
Figure 1. Section 232 Investigation Process
or “interested party” to request that Commerce investigate
to ascertain the effect of specific imports on U.S. national
security. Commerce may self-initiate an investigation.
Investigation. Once a Section 232 investigation is
requested in writing, Commerce must “immediately initiate
an appropriate investigation to determine the effects on the
national security” of the subject imports. After consulting
with the Secretary of Defense, other “appropriate officers of
the United States,” and the public, if appropriate,
Commerce has 270 days from the initiation date to prepare
a report advising the President on whether the targeted
product is being imported “in certain quantities or under
such circumstances” to impair U.S. national security, and to
provide recommendations based on the findings.
The Bureau of Industry and Security (BIS) at Commerce
conducts the investigation (15 C.F.R. §705). In terms of
national security, Commerce considers: (1) existing
Source: CRS graphic based on 19 U.S.C. §1862.
domestic production of the product; (2) future capacity
needs; (3) manpower, raw materials, production equipment,
How Does Section 232 Differ from Other
facilities, and other supplies needed to meet projected
Trade Enforcement Tools?
national defense requirements; (4) growth requirements,
Section 232 is one of several U.S. policy tools addressing
including the investment, exploration, and development to
imports. Other tools include Section 201 of the Trade Act
meet them; and (5) any other relevant factors.
of 1974 (19 U.S.C. §§2252 et seq.) to potentially impose
On imports, Commerce must consider: (1) the impact of
temporary safeguard measures for import surges of fairly-
foreign competition on the domestic industry deemed
traded goods, based on U.S. International Trade
essential for national security; (2) the effects that the
Commission (ITC) investigations of whether the imports
“displacement of domestic products” cause, including
are causing or threaten to cause serious injury. Rather than
substantial unemployment, decreases in public revenue, loss
focusing on national security, however, Section 201
of investment, special skills , or production capacity; and (3)
investigations aim to help the U.S. industry return to health
any other relevant factors that are causing, or will cause, a
and any actions taken are temporary. Similar to Section
weakening in the national economy. Commerce may
232, presidential action is required under Section 201
request public comments or hold hearings, if appropriate.
before tariffs can be imposed.
An Executive Summary of the final report (excluding any
Other import policy tools include antidumping (AD) and
countervailing duty (CVD) actions, provided when a
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Section 232 of the Trade Expansion Act of 1962
domestic industry is materially injured, or threatened with
impair national security from imports of grain-oriented
material injury, either by sales found to be at less than fair
electrical steel for transformers. In response, Mexico
value in the U.S. market (AD) or of products found to be
agreed to set up a monitoring system and avoided potential
subsidized by a foreign government or other public entities
new tariffs on its exports of these products to the United
(CVD). Presidential action is not required in these
States. The petitioner for mobile crane imports withdrew its
investigations; it is automatic, based on affirmative findings
request and Commerce ended the investigation. The probe
jointly by the ITC and Commerce.
into vanadium imports found no national security threat.
Prior Section 232 Actions
Following recommendations in the Biden Administration’s
Prior to the Trump Administration, Commerce initiated 26
supply chain review, in September 2021, Commerce
Section 232 national security investigations, beginning in
launched an investigation into neodymium magnets used in
1963 (Figure 2). Five positive findings addressed
some defense and critical infrastructure systems.
petroleum products or crude oil, resulting in actions that
Figure 2. Section 232 Investigations 1963-2021
included two embargos (on crude oil from Iran in 1979 and
on crude oil from Libya in 1982). Before the Trump
Administration, a president last imposed tariffs or other
trade restrictions under Section 232 in 1986.
Recent Use of Section 232
The Trump Administration opened eight Section 232
investigations. Commerce initiated two investigations, into
steel and aluminum imports, in April 2017. In each,
Commerce analyzed current and future requirements for
national defense and 16 specific critical infrastructure
Source: CRS graphic based on BIS data (https://www.bis.doc.gov/).
sectors. The agency determined that the quantities and
WTO Implications
circumstances of the imports threatened to impair U.S.
Under WTO agreements, Article XXI of the General
national security and recommended presidential action.
Agreement on Tariffs and Trade (GATT) allows WTO
President Trump concurred with Commerce’s findings, and
members to take measures in order to protect “essential
security interests.” Several WTO trading partners, including
in March 2018, applied tariffs of 25% and 10% on certain
China and India, have challenged the current Section 232
imports of steel and aluminum, respectively, covering most
tariffs by alleging that they violate GATT Article I, which
U.S. trading partners. In January 2020, he expanded the
obligates WTO members to treat one country’s goods no
scope of the tariffs to include certain derivative goods.
less favorably than another member’s; and GATT Article
Permanent exemptions were granted to Brazil and South
II, which generally prohibits members from placing tariffs
Korea for steel and to Argentina for steel and aluminum in
on goods above the upper limits to which they agreed.
exchange for quotas. Australia was exempted from both
tariffs. In May 2019, President Trump lifted the tariffs on
Some WTO members have also asserted that the U.S.
actions violate the WTO Agreement on Safeguards and
imports from Canada and Mexico and announced a joint
have imposed counter tariffs on U.S. imports without WTO
monitoring and consultation system. More recently, under
authorization, which also may raise questions about
the Biden Administration in November 2021, the United
whether those members are upholding similar WTO
States and the European Union (EU) agreed to a tariff-rate
commitments. The EU suspended, but did not cancel, its
quota system to replace the tariffs imposed by the former
case after negotiating the tariff rate quota.
administration. The new agreement will involve monitoring
of bilateral trade in steel and aluminum, and aims to
Issues for Congress
develop a broader framework to restore market-oriented
The Biden Administration continues to retain many of the
conditions globally while addressing overcapacity and
Section 232 tariffs on steel and aluminum imports and may
greenhouse gas emissions.
consider new tariffs . The recent Section 232 investigations
and actions raise a number of issues for Congress, including
Commerce initiated a third investigation into the imports of
automobiles and certain automotive parts in May 2018, and
Should Congress consider amending current delegated
concluded that the imports posed a national security threat.
authorities under Section 232, such as by requiring an
In July 2019, President Trump did not concur with the
economic impact study, congressional consultation or
Commerce Section 232 finding that imports of uranium ore
approval, or by specifying further guidance?
and related products threatened to impair national security,
Have the Section 232 tariffs achieved the stated goals?
but did establish a working group to address the issue. In
How should Congress work with the Administration to
February 2020, President Trump agreed with the finding of
review the existing Section 232 tariffs and actions?
a national security threat posed by imports of titanium
How do U.S. unilateral actions impact the multilateral
sponge and instructed officials to negotiate with Japan to
trading system and could they encourage similar
ensure U.S. access, rather than to restrict imports.
actions by other trading partners?
In spring 2020, Commerce initiated three investigations into
Rachel F. Fefer, Analyst in International Trade and
imports used in national defense applications and certain
Finance
critical infrastructure sectors. Commerce found a threat to
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Section 232 of the Trade Expansion Act of 1962
IF10667
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https://crsreports.congress.gov | IF10667 · VERSION 26 · UPDATED