Four more importers have now filed lawsuits challenging Section 232 tariffs on steel and aluminum “derivatives,” and one of them has already been successful in obtaining a court order blocking liquidation of their entries, if not collection of the tariffs. New Supplies and GJ Burkhart (dba Fry Fastening Systems) together filed a suit at the Court of International Trade Feb. 25. Represented by Brenda Jacobs, they told the court that the Justice Department had agreed to an order directing CBP to suspend liquidation until the case is eventually decided. CIT granted the motion and issued the order on Feb. 28.
Section 232 Tariffs
The United States currently maintains a 25% tariff on steel imports and 10% on tariff on aluminum imports under Section 232 of the Trade Expansion Act of 1962. In 2018, the Trump administration imposed Section 232 Tariffs on steel and aluminum imports into the United States, citing national security concerns. The U.S. agreed to lift tariffs on Canada and Mexico after the signing of the United States-Mexico-Canada Agreement (USMCA), and reached deals with the European Union, Japan and other countries to replace the tariffs with quotas for steel and aluminum imports into the U.S.
The following lawsuits were filed at the Court of International Trade during the week of Feb. 24 - March 1:
The European Union's Committee on International Trade Chairman Bernd Lange, in a roundtable with trade reporters Feb. 27, said that he asked officials from the Office of the U.S. Trade Representative if there's any truth to rumors that the U.S. will either pull out of the government procurement agreement at the World Trade Organization, or that it will seek to raise its bound tariffs, a process that would begin at the WTO. “I got confirmation from all stakeholders this will not happen,” said Lange, who was in Washington to talk with officials from USTR, Congress, unions and think tanks. But, he added, “sometimes decisions in the United States are taken quite quick,” so he can't be sure that answer will be true next week.
A Canadian government analysis of NAFTA's replacement -- known as the Canada-U.S.-Mexico Agreement in that country -- estimates that it will increase Canadian GDP by just under 0.25% over five years. The estimate is based on comparing CUSMA to a withdrawal from NAFTA, not from the present trade deal.
The following lawsuits were filed at the Court of International Trade during the week of Feb. 17-23:
Correction: The Justice Department did not admit that PrimeSource is likely to succeed on the merits in its challenge to Section 232 tariffs on steel and aluminum “derivatives,” as part of its agreement on a preliminary injunction temporarily stopping collection of the duties on entries from PrimeSource (see 2002200025).
A third importer has now requested a court order blocking collection of new Section 232 tariffs on steel and aluminum “derivatives," and two others are not far behind. Huttig Building Products filed a lawsuit at the Court of International Trade on Feb. 18 challenging the new tariffs, and a day later asked for a temporary restraining order and preliminary injunction that would bar imposition of the tariffs on entries from Huttig and its affiliate while the court considers the legal challenge. Astrotech Steels and Trinity Steel filed their own complaints on Feb. 20, though as of press time they had not yet asked the court to order a halt to the tariffs.
The International Trade Commission recently issued two new revisions to the 2019 Harmonized Tariff Schedule. Changes include new and amended exclusions from Section 301 tariffs from China, as well as a decrease in tariffs for goods on list 4A. The ITC also implemented new Section 232 tariffs on some finished goods of steel and aluminum that took effect Feb. 8, as well as a shift to a quarterly tariff-rate quota for imports of large residential washers subject to Section 201 safeguard duties.
CBP created Harmonized System Update (HSU) 2001 on Feb. 13, containing 12,922 Automated Broker Interface records and 2,380 Harmonized Tariff Schedule records, it said in a CSMS message. The update includes the Section 301 tariff decrease for goods on list 4A (see 2001160019) and the expanded Section 232 tariffs on steel and aluminum goods, it said. It also includes recently released Section 301 tariff exclusions (see 2002030008).
A challenge to Section 232 tariffs that began Feb. 8 on finished steel and aluminum products could proceed quickly, if the Court of International Trade approves a jointly proposed schedule filed Feb. 14 that would have written arguments in the case wrapped up by May. CIT a day earlier issued a preliminary injunction barring CBP from collecting the tariffs from the importer that filed the lawsuit, PrimeSource. Oman Fasteners has requested a similar injunction in a separate case, but as of press time the court had not ruled on the motion. The preliminary injunction for PrimeSource results from an agreement between the government and PrimeSource nine days after the lawsuit was filed.