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Section 232 of the Trade Expansion Act of 1962

Section 232 allows the President to impose import
restrictions based on an investigation and affirmative
determination by the Department of Commerce
(Commerce) that certain imports threaten to impair U.S.
national security. President Trump initiated eight Section
232 investigations, and ultimately imposed tariffs under two
investigations on steel and aluminum. Through new
bilateral agreements, President Biden is addressing the
Section 232 tariff measures taken by President Trump and
has initiated a new investigation. Actions under Section 232
have generated debate in Congress and at the multilateral
level in the World Trade Organization (WTO). Some in
Congress support 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 interested party to request that Commerce investigate
to ascertain the effect of specific imports on U.S. national
security. Commerce may also 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 C.F.R. §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.
An Executive Summary of the final report (excluding any

Updated April 1, 2022

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 action 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

Source: CRS graphic based on 19 U.S.C. §1862.
How Does Section 232 Differ from Other
Trade Enforcement Tooks?
Section 232 is one of several U.S. policy tools addressing
imports. Other tools include Section 201 of the Trade Act
of 1974 (19 U.S.C. §§2252 et seq.) to potentially impose
temporary safeguard measures for import surges of fairly-
traded goods, based on U.S. International Trade
Commission (ITC) investigations of whether the imports
are causing or threaten to cause serious injury. Rather than
focusing on national security, however, Section 201
investigations aim to help the U.S. industry return to health
and any actions taken are temporary. Similar to Section
232, presidential action is required under Section 201
before tariffs can be imposed.
Other import policy tools include antidumping (AD) and
countervailing duty (CVD) actions, provided when a

Investigation requested.
Secretary of Commerce investigates.
Investigation includes consultation with
290days DOD and may include others.
Secretary of Commerce reports findings
and recommendations to the President.
nsf     fin dings   a
ore negative n   fo aae
fudherochon     9 10 days
r am~President decides whetherto accept
findingsand recommendations.
30days             Presi dent implements action (if any)
President informs Congress.

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