The U.S. Court of Appeals for the Federal Circuit's recent decision upholding President Donald Trump's imposition of Section 232 national security tariffs on steel and aluminum derivative products provides further evidence that exporter Oman Fasteners will suffer irreparable harm without an injunction in an antidumping duty case, Oman Fasteners argued. Filing a motion to take judicial notice at the Court of International Trade on Feb. 7, the exporter said that in light of the Federal Circuit's decision it will be required to pay the Section 232 duties on its steel nails entered after Feb. 8, 2020 (Oman Fasteners v. United States, CIT # 22-00348).
President Donald Trump legally expanded the Section 232 national security tariffs to include steel and aluminum "derivative" products despite implementing the expansion beyond procedural deadlines laid out in the statute, the U.S. Court of Appeals for the Federal Circuit ruled in a Feb. 7 opinion. Relying on the appellate court's opinion in Transpacific Steel v. U.S., in which the court said that the president can adjust the tariffs beyond these time limits if it relates to the original plan of action laid out in the initial Section 232 tariff action, the Federal Circuit said that the expansion of the tariffs was related to the original plan.
Then-President Donald Trump legally expanded the Section 232 national security tariffs onto steel and aluminum "derivative" products, despite implementing the expansion beyond certain procedural deadlines laid out in the statute, the Court of Appeals for the Federal Circuit ruled in a Feb. 7 opinion. Relying on its 2021 opinion in Transpacific Steel v. U.S., in which the court said the president can adjust the tariffs beyond the time limits if it relates to the original plan of action laid out by the initial Section 232 tariff action, the Federal Circuit said the president can take action against derivatives despite the Commerce Department secretary not having individually investigated these articles. Judges Richard Taranto, Raymond Chen and Kara Stoll said the expansion to steel derivatives was within Section 232's authorization of presidential action.
The U.S. filed appeals against four World Trade Organization dispute panel rulings that found the U.S. Section 232 national security tariffs on steel and aluminum violated global trade rules. The U.S. said during the Jan. 27 meeting of the dispute settlement body it will take the case to the Appellate Body -- the next tier of the WTO's dispute settlement system that stands defunct due to U.S. refusal to seat members on the body over reform concerns.
The U.S. Court of Appeals for the Federal Circuit, during Jan. 10 oral arguments, heard disputes over whether the court should follow the Court of International Trade in setting aside Section 232 national security tariffs on derivative products made of steel and aluminum. Seeking to differentiate the appeal from the Federal Circuit's decision in Transpacific Steel v. U.S., in which the court said the president can take certain Section 232 action beyond procedural deadlines, counsel for plaintiff-appellants PrimeSource Building Products, Oman Fasteners and Huttig Building Products said the matter is different for derivative goods, while the government said Transpacific has settled the matter (PrimeSource Building Products v. U.S. , Fed. Cir. # 21-2066).
The Supreme Court of the U.S. in a Jan. 5 order gave the government more time to respond to a petition in a broad challenge to President Donald Trump's Section 232 steel and aluminum tariffs. The U.S. now has until Feb. 21 to respond after arguing that it needed additional time due to the "heavy press of earlier assigned cases to the attorneys handling this matter" (USP Holdings v. United States, U.S.S.C. #22-0565)
Trade Law Daily is providing readers with the top 20 stories published in 2022. All articles can be found by searching on the titles or by clicking on the hyperlinked reference numbers.
Although some observers thought the Office of the U.S. Trade Representative's reaction to losing cases filed by Norway, Switzerland, Turkey and China at the World Trade Organization over its steel and aluminum tariffs marked a new era of rejecting the rules-based trading system, others who had served either in the WTO or the U.S. government said there was nothing too surprising about the U.S. reaction to its loss.
The World Trade Organization issued a series of four rulings Dec. 9 finding that the U.S. Section 232 steel and aluminum tariffs set by President Donald Trump violated global trade rules. In the landmark rulings, a three-person panel found that the duties violated Articles I, II, XI and XXI of the General Agreement on Tariffs and Trade. The dispute panel said the tariffs, which the Trump administration said were needed to maintain U.S. national security, were not "taken in time of war or other emergency in international relations," as mandated by Article XXI(b)(iii) of national security protections, so the duties violate the GATT.
The U.S. Court of Appeals for the Federal Circuit will hold an oral argument on Jan. 10, 2023, at 10 a.m. EST in a case on whether President Donald Trump illegally expanded Section 232 steel and aluminum tariffs to include derivative products. According to the notice of oral argument, the court will hold the hearing in Courtroom 201 in the Howard T. Markey National Courts Building in Washington. In the case, the Court of International Trade said that Trump illegally expanded the tariffs to derivative products beyond the 105-day deadline to take tariff action that runs from the submission of a report from the commerce secretary. In Transpacific Steel v. U.S., however, the Federal Circuit said that Trump could take certain tariff actions beyond this deadline so long as it it was part of the original "plan of action" (see 2107130059) (PrimeSource Building Products v. U.S., Fed. Cir. # 21-2066).