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Section 232 Tariffs
What are Section 232 Tariffs?
Section 232 Tariffs refer to certain provisions under the Trade Expansion Act of 1962 that authorize the President to take action to adjust imports of goods into the U.S. that are deemed to threaten national security. These measures are based on investigations conducted by the U.S. Department of Commerce that assess whether certain imports pose a risk to domestic industries critical for national defense or essential infrastructure. If such a threat is identified, the President can impose tariffs or quotas on the imports in question to protect national security interests. These trade remedies are intended to address situations where reliance on foreign supplies of certain goods could impair the ability of the U.S. to respond to national emergencies or other defense-related needs.
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How do Section 232 Tariffs impact businesses?
The importance of Section 232 Tariffs lies in their ability to protect vital industries from foreign competition, strengthen national security by reducing reliance on imports for essential materials, and boost domestic production. Additionally, these measures can impact global trade relations, as they may lead to retaliatory tariffs or disputes with trading partners.
For example, on March 8, 2018, President Trump exercised his authority under Section 232 of the Trade Expansion Act of 1962 to impose a 25% tariff on steel imports, with exemptions for Canada and Mexico. The U.S. government actively enforces the proper payment of Section 232 tariffs. As a result of the 25% tariff on steel imports, businesses importing steel or steel-related products must remain vigilant and ensure the correct payment of tariffs to avoid penalties or supply chain disruptions.
How can Schulz Trade Law PLLC (STL) help clients with Section 232 Tariffs?
Schulz Trade Law PLLC (STL) can assist businesses with navigating Section 232 Tariffs. Our services include conducting compliance audits and analysis, offering guidance on the legal framework surrounding Section 232 investigations, assessing the potential impact of tariffs or quotas on imports, evaluating eligibility for exemptions or exclusions, and recommending strategies to mitigate risks. By working with STL’s trade attorneys and analysts, companies can ensure compliance and minimize the potential effects of Section 232 actions on their operations.