Federal Circuit Finds President Can Modify Section 232 Tariffs After 90-Day Deadline
President Donald Trump did not violate procedural timelines when he raised tariffs on Turkish steel from 25 to 50% in August 2018, beyond the 90-day deadline and 15-day implementation period for initial Section 232 tariffs, the U.S. Court of Appeals for the Federal Circuit said in a July 13 opinion. Reversing a Court of International Trade decision, the Federal Circuit threw a wrench in a key argument against certain Section 232 tariffs that action beyond the statutory timelines should not be allowed.
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“We conclude that the best reading of the statutory text … understood in context and in light of the evident purpose of the statute and the history of predecessor enactments and their implementation, is that the authority of the President includes authority to adopt and carry out a plan of action that allows adjustments of specific measures, including by increasing import restrictions, in carrying out the plan over time,” CAFC said.
The president made the determination that greater import restrictions were needed to achieve a certain domestic steel capacity "in a short period after the Secretary's finding and after the initial presidential action," the court said. The initial presidential action also allowed for a "continuing course of action" which includes raising tariff rates. Due to this, the tariff hike on Turkish steel did not violate the law, the court ruled.