Breaking News: US Court of International Trade overturns tariffs imposed by Donald Trump on steel and aluminium imports.
Donald Trump’s 2018 tariffs on steel and aluminium imports, justified under Section 232 of the Trade Expansion Act of 1962 on national security grounds, have been struck down by the US Court of International Trade. The ruling, delivered yesterday, deems the tariffs unlawful. This follows challenges brought by a number of countries and US businesses.
The court found that the Trump administration exceeded its authority when applying the tariffs broadly. The basis for the 232 action requires a specific and direct link between imports and genuine threats to national security. The court determined this link had not been demonstrably established. The tariffs, initially imposed on imports from the European Union, Canada, and Mexico, prompted retaliatory measures and disrupted global trade. Subsequent exemptions were granted to some nations, including Australia.
According to reports, the court’s findings centre on the fact that the administration failed to properly define what constituted a threat to national security. Businesses argued the tariffs increased costs for manufacturers and consumers. The Biden administration continued some of the tariffs, but significantly reduced their scope and scale after taking office.
The ruling’s significance lies in potentially opening the door to challenges against future uses of Section 232, and may compel greater justification for any national security-based trade restrictions. Business groups have welcomed the decision, viewing it as a strengthening of the rule of law in trade policy.
The Biden administration is currently reviewing the ruling and considering its options, which include an appeal. The ruling does not automatically trigger refunds of tariffs already paid.
Sources: The Sun, The Daily Telegraph, The Daily Mail, Fox News, The Jerusalem Post.
