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Federal Circuit Examines the Scope of
Presidential Tariff Authority
July 21, 2021
In response to perceived unfair trade practices of other countries, the Trump Administration imposed
tariffs and other trade restrictions on billions of dollars of imported products using authority that Congress
delegated to the executive branch in various provisions of federal law. To justify the trade measures, the
Trump Administration cited national security concerns, injury to competing domestic industries, and
allegedly unfair trade practices of particular countries (e.g., China's practices with respect to intellectual
property rights). The Biden Administration has kept most of these tariffs in place.
During the past few years, some industry groups and individual companies have challenged these tariff
actions on constitutional and statutory grounds in U.S. courts. Federal courts have almost uniformly
rejected these challenges. (This Sidebar does not discuss the challenges to certain tariffs currently pending
before the World Trade Organization (WTO) or other international bodies.)
A July 14, 2020 decision by a three-judge panel of the U.S. Court of International Trade (CIT) initially
marked a departure from this trend in the case law. In Transpacific Steel LLC v. United States, a U.S.
company sought a partial refund of duties it paid on certain steel imports from Turkey. The imports were
subject to tariffs that the President imposed under Section 232 of the Trade Expansion Act (the Act). In a
decision granting the company's motion for judgment on the agency record, the CIT held that the
President's power to impose tariffs under Section 232(b), while broad, is not unlimited. Specifically, the
court held that the President must closely adhere to the statute's procedural requirements, including
deadlines for action, when exercising such authority.
On July 13, 2021, the Federal Circuit Court of Appeals overturned the CIT's decision. The Circuit Court
held that the President did not violate Section 232's procedures when increasing tariffs on Turkish steel.
This Sidebar explores the Federal Circuit's decision in more detail. The Sidebar begins with an
examination of the decision's background. It concludes with an examination of the potential implications
of the Federal Circuit's decision for future tariff actions under Section 232 and similar statutes granting
the President power over foreign commerce.
Congressional Research Service
https://crsreports.congress.gov
LSB10628
CRS Legal Sidebar
Prepared for Members and
Committees of Congress

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