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1 1 (August 17, 2021)

handle is hein.crs/goveeja0001 and id is 1 raw text is: Congressional Research Service Inforr ig the legislative debate since 1914 Section 232 of the Trade Expansion Act of 1962 Background President Biden is reviewing the existing Section 232 tariffs imposed by President Trump and has raised the possibility of new investigations. Section 232 allows the President to impose import restrictions based on an affirmative investigation determination by the Department of Commerce (Commerce) that certain imports threaten to impair the national security. After conducting eight Section 232 investigations, President Trump acted five times, twice imposing tariffs, declining to act on a sixth finding; another investigation found no threat, and one was terminated. Recent actions under Section 232 have generated debate in Congress and at the multilateral level in the World Trade Organization (WTO). Some in Congress favor legislative options to amend the congressional delegation of authority. Section 232 Process Section 232 of the Trade Expansion Act of 1962 (19 U.S.C. §1862, as amended) allows any department, agency head, or any interested party to request that Commerce investigate to ascertain the effect of specific imports on U.S. national security. Commerce may self-initiate an investigation. Investigation. Once a Section 232 investigation is requested in writing, Commerce must immediately initiate an appropriate investigation to determine the effects on the national security of the subject imports. After consulting with the Secretary of Defense, other appropriate officers of the United States, and the public, if appropriate, Commerce has 270 days from the initiation date to prepare a report advising the President on whether the targeted product is being imported in certain quantities or under such circumstances to impair U.S. national security, and to provide recommendations based on the findings. The Bureau of Industry and Security (BIS) at Commerce conducts the investigation (15 CFR Section 705). In terms of national security, Commerce considers: (1) existing domestic production of the product; (2) future capacity needs; (3) manpower, raw materials, production equipment, facilities, and other supplies needed to meet projected national defense requirements; (4) growth requirements, including the investment, exploration, and development to meet them; and (5) any other relevant factors. On imports, Commerce must consider: (1) the impact of foreign competition on the domestic industry deemed essential for national security; (2) the effects that the displacement of domestic products cause, including substantial unemployment, decreases in public revenue, loss of investment, special skills, or production capacity; and (3) any other relevant factors that are causing, or will cause, a weakening in the national economy. Commerce may request public comments or hold hearings, if appropriate. Updated August 17, 2021 An Executive Summary of the final report (excluding any confidential or classified material) must be published in the Federal Register. Presidential Action and Notification. If Commerce finds in the negative, Commerce informs the President and no further action is required. If Commerce determines in the affirmative, the President, upon receipt of the report, has 90 days to: (1) determine whether he/she concurs with its findings; and (2) if so, determine the nature and duration of the action to be taken to adjust the subject imports. The President may decide to impose tariffs or quotas to offset the adverse effect, without any limits on their duration, or take other action. The President may exclude specific products or countries. After a determination, the President must implement the action within 15 days, and submit a written statement to Congress explaining the actions or inaction within 30 days (see Figure 1). The President must also publish his determination in the Federal Register. Figure I. Section 232 Investigation Process Investigation requested. Secretary of Commerce investigates. Investigation includes consultation with DOD and may include others. 270 days Secretary of Commerce reports findings and recommendations to the President. lfhnyns !fbnangsaaf are ngativ, no afiirm;idve, ftheracon day requsired President decides whether to accept findings and recommendations. Y5 days 30 days 9 President implements action (if any). President informs Congress. Source: CRS graphic based on 19 U.S.C. §1862. Prior Section 232 Actions Prior to the Trump Administration, Commerce initiated 26 Section 232 national security investigations, beginning in 1963. Of the 26 cases, Commerce made negative determinations 62% of the time. Prior to 2018, when Commerce made positive determinations, the President took action six times (Figure 2). Five positive findings addressed petroleum products or crude oil, resulting in actions that included two embargos (on crude oil from Iran in 1979 and on crude oil from Libya in 1982). Aside from the Trump Administration, a president last imposed tariffs or other trade restrictions under Section 232 in 1986. Trump Administration and Section 232 The Trump Administration opened eight Section 232 investigations. Commerce initiated two investigations, into ittps://Crsreports.congress.gt

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