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Resarh Servi k-M-
'Steel Subject to Tariffs: Federal Circuit
Upholds Constitutionality of Section 232
March 18, 2020
In a February 28, 2020, decision, the U.S. Court of Appeals for the Federal Circuit (Federal Circuit)
affirmed a judgment of the U.S. Court of International Trade (CIT) upholding the constitutionality of
Congress's delegation of tariff authority to the executive branch in Section 232(b) of the '-rade Expansion
Act of 1962 (generally referred to as Section 232). The decision leaves in place tariffs on imports of
steel and aluminum that the Administration imposed for national security purposes in March 2018, and
subsequently expanded in February 2020. In affirming the CIT's judgment in American Institute for
International Steel (AIIS) v. United States, the Federal Circuit determined that Section 232 did not violate
the Constitution's separation of powers by delegating too much of Congress's authority over commerce to
the executive branch. The court thus rejected the constitutional challenge by trade associations
representing U.S. steel importers, relying almost exclusively on the Supreme Court's 1976 decision in
Federal Energy Administration v. Algonquin SNG, Inc. The Federal Circuit agreed with the CIT that the
case was controlled by Algonquin, which held that Section 232 did not violate the nondelegation doctrine.
This Legal Sidebar (1) provides background on Section 232; (2) discusses the CIT's decision in AIIS;
(3) examines the Federal Circuit's decision on appeal; and (4) identifies several implications for
Congress.
Background on Section 232
Section 232 authorizes the President to adjust the imports of products and their derivatives to address
threats to national security. The President's authority is triggered if the U.S. Department of Commerce
(Commerce) conducts an investigation and concludes that the articles are being imported into the United
States in such quantities or under such circumstances as to threaten to impair the national security. If
Commerce makes such a finding, Section 232 gives the President significant discretion to take action, for
such time as he deems necessary, to adjust the imports of a product and its derivatives. The statute
provides that Commerce and the President shall consider a variety of factors when determining whether
certain imports threaten national security, and how to adjust them if necessary. It characterizes national
security concerns broadly, stating that:
In the administration of this section, the Secretary [of Commerce] and the President shall firther
recognize the close relation of the economic welfare of the Nation to our national security, and shall
Congressional Research Service
https://crsreports.congress.gov
LSB10421
CRS Lega Sidebar
Prepared for Mei-beis and
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