Trump says he's going to implement a tariffs of 25% on steel and 10% on aluminum next week. Meanwhile the EU, Canada, and China and several other countries are considering retaliation.
The law Trump is using to implement these tariffs is Section 232 of the Trade Expansion Act.
The Dow sank 420 points the day the tariffs were announced.
Reactions from around the world:
The law Trump is using to implement these tariffs is Section 232 of the Trade Expansion Act.
Section 232 of the Trade Expansion Act of 1962 (19 U.S.C. §1862) authorizes the Secretary of Commerce to conduct comprehensive investigations to determine the effects of imports of any article on the national security of the United States. Section 232 investigations include consideration of:
Section 232 requires that the Secretary notify the Secretary of Defense that an investigation has been initiated. The Secretary also consults with the Secretary of Defense regarding methodological and policy questions raised in the investigation and can seek information and advice from other government agencies.
The Secretary’s report to the President, prepared within 270 days of initiation, focuses on whether the importation of the article in question is in such quantities or under such circumstances as to threaten to impair the national security. The President can concur or not with the Secretary's recommendations, and, if necessary, take action to “adjust the imports of an article and its derivatives.” In addition, the Secretary can recommend, and the President can take, other lawful non-trade related actions necessary to address the threat.
- domestic production needed for projected national defense requirements;
- domestic industry’s capacity to meet those requirements;
- related human and material resources;
- the importation of goods in terms of their quantities and use;
- the close relation of national economic welfare to U.S. national security;
- loss of skills or investment, substantial unemployment and decrease in government revenue; and
- the impact of foreign competition on specific domestic industries and the impact of displacement of any domestic products by excessive imports.
Section 232 requires that the Secretary notify the Secretary of Defense that an investigation has been initiated. The Secretary also consults with the Secretary of Defense regarding methodological and policy questions raised in the investigation and can seek information and advice from other government agencies.
The Secretary’s report to the President, prepared within 270 days of initiation, focuses on whether the importation of the article in question is in such quantities or under such circumstances as to threaten to impair the national security. The President can concur or not with the Secretary's recommendations, and, if necessary, take action to “adjust the imports of an article and its derivatives.” In addition, the Secretary can recommend, and the President can take, other lawful non-trade related actions necessary to address the threat.
Reactions from around the world:
- European Union: EU mulls retaliation if US slaps import tariffs on steel
- Australia: Government seeks urgent details on how US tariffs will hit Australian steel and aluminium
- Canada: Unhappy Canada vows to retaliate against any U.S. steel tariffs
- UK: UK industry fears as Donald Trump's 'devastating' steel tariff sends markets tumbling
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