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Thread: Trump can no longer impose 'Section 232' auto tariffs after missing deadline: experts

  1. #1

    Trump can no longer impose 'Section 232' auto tariffs after missing deadline: experts

    https://www.reuters.com/article/us-u...-idUSKBN1XT0TK

    WASHINGTON (Reuters) - The clock has run out on President Donald Trump’s “Section 232” tariffs on imports of foreign-made cars and auto parts, after he failed to announce a decision by a self-imposed deadline, trade law experts say.

    The U.S. administration may have to find other means if Trump wants to tax European or Japanese car imports, a key part of the U.S. president’s pledge to make America’s trade relationships more fair, the experts say.

    Their argument centers on the Trade Expansion Act of 1962, a U.S. law aimed at protecting America's Cold War-era defense industrial base. Section 232 here of that act lays out how a U.S. president can tax specific imports if the Department of Commerce deems them a threat to national security.

    The Trump administration launched its Section 232 probe of foreign autos in May 2018. Six months ago Trump agreed with an administration study that some imported vehicles and components are “weakening our internal economy” and could harm national security. He has threatened to tax them by as much as 25%.

    But he took no action on Nov. 14, the deadline established by the act to take action, puzzling automakers.

    Bolstering the contention by trade experts that the president’s hands are now tied is a new U.S. trade court ruling, published on Monday, that Trump’s authority had lapsed in a previous Section 232 investigation on imports of foreign steel.

    UNUSED TOOL
    Trump has hailed the threat of car tariffs as a strong negotiating tool to gain leverage over his opponents.

    But an initial trade deal with Japan reached in September did not address auto trade, while trade talks with the EU have not formally started as the two sides remain at odds over the scope of the negotiations.

    The 1962 act is clear about the time limits that a president has for invoking tariffs to protect U.S. national security.

    “I don’t see the law as giving the president any options other than take action against imports or determine to take no action and the case is closed,” said Jennifer Hillman, a Georgetown University law professor and a former World Trade Organization judge.

    By not acting by the deadline, Trump has forfeited his authority to impose the Section 232 tariffs, added Clark Packard, trade policy counsel with libertarian advocacy group RStreet.org.

    In a decision published on Monday, the Court of International Trade ruled that Trump ran out of time on a Section 232 investigation of steel imports, when he tried to double the tariffs on Turkish steel to 50% in August 2018.

    The attempt to double tariffs was challenged by an importer of Turkish steel, which claimed that, among other things, the move came too late to follow proper procedures in the law.

    The New York-based federal court, which handles appeals of U.S. duty determinations, ruled in Transpacific Steel LLC’s favor and said Trump’s “expansive view” of his Section 232 powers was “mistaken” and is confined.

    “Although the statute grants the President great discretion in deciding what action to take, it cabins the President’s power both substantively, by requiring the action to eliminate threats to national security caused by imports, and procedurally, by setting the time in which to act,” wrote judges Claire Kelly and Jane Restani in the decision dated Nov. 15.

    Devin Sikes, a trade lawyer with Akin Gump in Washington, wrote in a note to clients that the case lays the groundwork for future challenges to Section 232 cases.

    A White House official, asked to comment on whether time has run out for Trump’s 232 decision, said only that U.S. Trade Representative Robert Lighthizer “has updated the President on the progress of trade negotiations to address concerns related to the threatened impairment of national security with respect to imported automobiles and certain automobile parts.”

    ESCAPE HATCHES
    A clause here(title:19%20section:1862%20editionrelim) in the 1962 law may offer an escape hatch for Trump. If an agreement is not reached within 180 days or proves ineffective, "the President shall take such other actions as the President deems necessary to adjust the imports of such article so that such imports will not threaten to impair the national security."
    Quote Originally Posted by Swordsmyth View Post
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  3. #2
    Trump knows what he is doing.
    Never attempt to teach a pig to sing; it wastes your time and annoys the pig.

    Robert Heinlein

    Give a man an inch and right away he thinks he's a ruler

    Groucho Marx

    I love mankindÖitís people I canít stand.

    Linus, from the Peanuts comic

    You cannot have liberty without morality and morality without faith

    Alexis de Torqueville

    Those who fail to learn from the past are condemned to repeat it.
    Those who learn from the past are condemned to watch everybody else repeat it

    A Zero Hedge comment

  4. #3
    Proves it was not really a national security emergency.
    Quote Originally Posted by Swordsmyth View Post
    The quality seems to have dropped significantly since I came here, I guess you get what you pay for.
    I am Zippy and I approve of this post. But you don't have to.

  5. #4
    Quote Originally Posted by Zippyjuan View Post
    Proves it was not really a national security emergency.
    No, it doesn't.
    Never attempt to teach a pig to sing; it wastes your time and annoys the pig.

    Robert Heinlein

    Give a man an inch and right away he thinks he's a ruler

    Groucho Marx

    I love mankindÖitís people I canít stand.

    Linus, from the Peanuts comic

    You cannot have liberty without morality and morality without faith

    Alexis de Torqueville

    Those who fail to learn from the past are condemned to repeat it.
    Those who learn from the past are condemned to watch everybody else repeat it

    A Zero Hedge comment

  6. #5
    This is an emergency! We must do nothing!!
    Quote Originally Posted by Swordsmyth View Post
    I don't really care if I happen to be wrong about your positions, you are wrong about mine.
    Quote Originally Posted by Swordsmyth View Post
    I didn't vote for Trump.
    A POX ON BOTH YOUR PARTIES

  7. #6
    Quote Originally Posted by acptulsa View Post
    This is an emergency! We must do nothing!!
    Masterly inactivity.
    It's also possible that just the threat was enough.
    Never attempt to teach a pig to sing; it wastes your time and annoys the pig.

    Robert Heinlein

    Give a man an inch and right away he thinks he's a ruler

    Groucho Marx

    I love mankindÖitís people I canít stand.

    Linus, from the Peanuts comic

    You cannot have liberty without morality and morality without faith

    Alexis de Torqueville

    Those who fail to learn from the past are condemned to repeat it.
    Those who learn from the past are condemned to watch everybody else repeat it

    A Zero Hedge comment

  8. #7
    Quote Originally Posted by Swordsmyth View Post
    No, it doesn't.
    If it was a real emergency, he would not have waited two years and still done nothing about it. You would want to act as soon as possible. Lack of action shows there was no emergency.
    Quote Originally Posted by Swordsmyth View Post
    The quality seems to have dropped significantly since I came here, I guess you get what you pay for.
    I am Zippy and I approve of this post. But you don't have to.

  9. #8
    Quote Originally Posted by Swordsmyth View Post
    Masterly inactivity.
    It's also possible that just the threat was enough.
    I guess he is the master of saying one thing and doing nothing.
    Quote Originally Posted by Swordsmyth View Post
    The quality seems to have dropped significantly since I came here, I guess you get what you pay for.
    I am Zippy and I approve of this post. But you don't have to.



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  11. #9
    Quote Originally Posted by Zippyjuan View Post
    If it was a real emergency, he would not have waited two years and still done nothing about it. You would want to act as soon as possible. Lack of action shows there was no emergency.
    He has been negotiating and many other things.
    Never attempt to teach a pig to sing; it wastes your time and annoys the pig.

    Robert Heinlein

    Give a man an inch and right away he thinks he's a ruler

    Groucho Marx

    I love mankindÖitís people I canít stand.

    Linus, from the Peanuts comic

    You cannot have liberty without morality and morality without faith

    Alexis de Torqueville

    Those who fail to learn from the past are condemned to repeat it.
    Those who learn from the past are condemned to watch everybody else repeat it

    A Zero Hedge comment



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