Trump Signs Memo Outlining Aluminum Investigation
President Donald Trump signed a memo on April 27 that outlines the Commerce Department’s Section 232 investigation into aluminum imports (here), which started the day before (see 1704270024). The memo orders the investigation to take into account how the quantities, availability, character and use of those imports affect the U.S.’s ability to meet national security requirements, noting the close relationship between the nation’s economic welfare and national security. Should the investigation find that aluminum imports are threatening or impairing national security, the report must recommend actions and steps to adjust imports so they won’t have that impact, the memo said.
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The memo also directs the investigation to consider the effect of foreign competition in the aluminum industry on the economic welfare of domestic industries, effects of the displacement of any domestic products by excessive aluminum imports, as well as the status and likely effectiveness of U.S. efforts to negotiate a worldwide reduction in global excess aluminum capacity. “Efforts to work with other countries to reduce excess global overcapacity have not succeeded,” the memo says. The memo also instructs the investigation to “proceed expeditiously.”
Section 232 allows the executive branch to level tariffs or quotas on any imports found by an investigation to endanger national security. “The artificially low prices caused by excess capacity and unfairly traded imports suppress profits in the American aluminum industry, which discourages long-term investment in the industry and hinders efforts by American aluminum producers to research and develop new and better grades of aluminum,” the memo states. Commerce launched a similar investigation into steel imports on April 19 (see 1704200029).