Photo: Alamy
President Donald Trump on Tuesday announced a move aimed at strengthening steel and aluminum tariff policies for the United States by “reinvigorating” a key section of a 1960s-era trade act.
According to the White House, the president has breathed new life into Section 232 of the Trade Expansion Act of 1962, which will focus on domestic steel and aluminum production “and achieving sustainable capacity utilization of at least 80%.”
The statement explained that “high import volumes from sources exempt from Section 232 tariffs” have been “depressing production volumes.”
The White House listed 10 major countries exempt from such tariffs, including Mexico and Ukraine.
But what is Section 232? According to the Department of Commerce, it authorizes the secretary of the agency to conduct investigations to assess whether imports from foreign nations may affect national security.
“The United States does not want to be in a position where it would be unable to meet demand for national defense and critical infrastructure in a national emergency,” Tuesday’s release read.
This announcement about tariffs and Section 232 comes just after the president signed proclamations restoring a “true” 25 percent tariff on steel and moving aluminum tariffs up to 25 percent, as well.
“Key reforms include eliminating all alternative agreements, applying strict ‘melted and poured’ standards, expanding tariffs to include key downstream products, terminating all general approved exclusions, and cracking down on tariff misclassification and duty evasion schemes,” the White House stated.
The president’s move to strengthen steel and aluminum has drawn praise from industry giants like the Century Aluminum Company. “On behalf of our employees, I thank President Trump for putting America first and strengthening the Section 232 tariffs, which will help drive the resurgence of domestic aluminum production,” said company CEO Jesse Gary in an official statement.
The Coalition for a Prosperous America – a non-partisan organization that represents domestic production workers in the United States – also lauded the president’s decision to focus on tariffing aluminum and steel.
“President Trump’s decision to implement global tariffs is a critical step toward restoring stability to American industry, safeguarding domestic production, and ensuring these critical sectors are not harmed by a surge of imports,” said CPA Chairman Zach Mottl on Tuesday.