To date, no major lawsuits challenging any of the new tariff actions taken by President Donald Trump have been filed. The reasons for that include high legal hurdles to success and inconsistency in the implementation of the tariffs, trade lawyers told us.
The U.S. Court of Appeals for the 5th Circuit on March 17 affirmed the dismissal of steel importer JSW Steel (USA)'s suit against three U.S. steel makers, which alleged that the companies illegally conspired to "boycott JSW by refusing to supply it with specific, domestically produced steel slab" (JSW Steel (USA) Inc. v. Nucor Corp., 5th Cir. # 22-20149).
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A State Department notice declaring that all agency efforts to control international trade now constitute a "foreign affairs function" of the U.S. under the Administrative Procedure Act will ultimately be subject to the discretion of the courts, trade lawyers told us.
The U.S. agreed to apply Section 232 steel tariff exclusions to 13 of importer California Steel Industries' entries. Filing a stipulated judgment at the Court of International Trade on March 11, California Steel and the government said they settled all issues in the case, additionally noting that Section 232 duties applied to one of the importer's entries will be "final and non-protestable" (California Steel Industries v. United States, CIT # 21-00015).
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President Donald Trump will likely turn to Section 301 to enact his plans for "reciprocal" tariffs, various trade lawyers told Trade Law Daily. Following the president's announcement of his reciprocal tariff plan, which will purportedly tackle "non-reciprocal trading arrangements" with many of the U.S.'s trading partners starting April 2, speculation ensued as to the precise scope of the tariffs and their legal bases.
Importer Outokumpu Stainless Steel brought a Feb. 20 complaint to the Court of International Trade alleging CBP had wrongly failed to correct the country of origin designated on 173 of its entries, resulting in the importer being assessed Section 232 tariffs (Outokumpu Stainless USA v. United States, CIT # 25-00047).
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Steel importer Seneca Foods Corp. urged the U.S. Court of Appeals for the Federal Circuit on Feb. 21 to overturn the Commerce Department's rejection of its Section 232 steel tariff exclusion requests, claiming its approach to exclusion requests "sought to ensure that the President's aims" in imposing the tariffs "would be fully realized." Seneca said the fact that U.S. Steel Corp., which objected to Seneca's requests, "declined to supply the very same volumes for which Seneca sought exclusions should be dispositive" (Seneca Foods Corp. v. United States, Fed. Cir. # 25-1310).