What Is Section 232 of the Trade Expansion Act?

Section 232 of the Trade Expansion Act of 1962 authorizes the president of the United States to adjust the imports of goods or materiaඣls f♈rom other countries if the quantity or circumstances surrounding those imports are deemed to threaten national security. This can be done through tariffs or other means.

The Trade Expansion Act of 1962 was signed into law by former President John F. Kennedy, who called it “the most important piece of legislation, I think, affecting economies since the passage of the Marshall Plan.”

Section 232 Process

The Section 232 process begins when a government official makes a request to the Department of Commerce to investigate the effects of a particular import on national security. The Secretary of Commerce may also self-initiate an investigation. Any investigation initiated must be reported to the Secretary of Defense, who can also be consulted for information and advice should any policy questions arise during the investigation.

The 澳洲幸运5官方开奖结果体彩网:Department of Commerce then reports its findings to the president within 270 days of initiating any investigation, with an emphasis on whether or not certain imports threaten to🐬 impair the country's national security. The president has 90 days to concur formally or not with th💧e report received from the Commerce Department.

If they concur, their statutory authority under Section 232 allows them to modify or adjust the imports as necessary through tariffs or quotas. In effect, following the report submitted, the president may take a range of actions, or no action, based on the secretary's recommendations provided in the reports.

Example of a Section 232 Investigation

Between 2017 and 2018,꧒ the Commerce Department conducted an investigation into American steel imports, finding that the quantities and circumstances of steel and aluminum imports threatened to impair national security as defined by Section 2💯32.

Wilbur Ross, then the U.S. Secretary of Commerce, reported that the quantities and circumstances of steel imports were weakening the U.S.'s internal economy. The department's report also stated that United States steel imports were nearly four times the amount of exports and that aluminum imports had risen to 90% of the total demand for primary aluminum. Therefore, Ross concluded that imports in the industry threatened to impair national security.

Ross recommen🌺ded implementing one or more of the following actions:

• A global tariff of at least 24% on steel imports from all countries
• A minimum 53% tariff on steel imports from 12 countries, including Brazil, China, Costa Rica, Egypt, India, Malaysia, Republic of Korea, Russia, South Africa, Thailand, Turkey, and Vietnam
• A quota on steel products from all countries equal to 63% of each country's 2017 exports to the U.S.

On March 8, 2018, Trump (his first term) exercised his presidential authority following Ross' recommendations under Section 232 of the Trade Expansion Act of 1962 to impose a 25% tariff on steel imports and a 10% tariff on aluminum imports, citing national security concerns.

Effects of the Investigation

In 2017, the U.S. imported 36 million metric tons of steel. Between March 2024 and February 2025, U.S. year-over-year steel imports fell to 24.6 million metric tons, with the largest amounts coming from Canada, Brazil, Mexico, and South Korea.

This reduction in steel imports was likely due to many factors, including the Section 232 tariffs imposed by Trump in 2018 (his first term) and increased by former President Biden. However, there are many other import influencers, such as how U.S. production and demand for steel look. U.S. production and shipping amounts are volatile and vary by month and year, so it's difficult to determine which influencers affect the industry the most at any given time.

The Bottom Line

Section 232 of the Trade Expansion Act of 1962 authorizes the president of the United States to modify ꦓimports of goods and services based on a determination of threat to national security. The process begins with an𝓀 investigation by the Department of Commerce on a particular import. After the findings of such an investigation are reported, the president may choose to impose tariffs, take other measures to limit imports, or take no action at all.