Donald Trump signed an executive order today launching a 232 investigation, which will establish whether steel imports pose a threat to national security. The investigation will be conducted under the authority of the amended Trade Expansion Act of 1962.
A report is expected within 270 days of initiation. The last related report was produced on Iron Ore and semi-finished Steel in October 2001. At the time, the US Department of Commerce was unable to conclude that import of iron ore and semi-finished steel threatened to impair the national security of the United States and, therefore, did not recommend any presidential action under Section 232 to adjust the level of imports.
The new investigation will also examine the “incremental effects” of additional tariffs on steel imports, including whether tariffs would result in excessive increases on US steel to end consumers.
Thomas J. Gibson, president and CEO of the American Iron and Steel Institute (AISI), applauded the executive order, saying, “Times of crisis call for extraordinary measures.”
Gibson said the launching of this investigation is “an impactful way to help address the serious threat posed by these unfair foreign trade practices.”
Philip K. Bell, president of the Steel Manufacturers Association (SMA), also commented. “This demonstrates that the administration recognizes the vital role that the domestic steel industry plays in our country’s national security,” Bell said. “By invoking this portion of US trade law, Section 232 of the Trade Expansion Act of 1962, to determine if imports of steel into the United States should be restricted on national security grounds the President appears to be using every tool in his presidential toolkit to support 21st century steelmaking.”