Cross Border Trade Compliance: Background M A D I S O N
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I. United States Tr a d e Statutes —————————————————
H A S T I N G S
https://crsreports.congress.gov/product/pdf/
product/pdf/IN/IN10943 and Section
IF/IF10156.
232 Auto Investigation, https://crsreports.
A. Section 232 of the Trade Expansion
congress.gov/product/pdf/IF/IF10971. B. Section 301 of the Trade Act of 1974
Act of 1962
Congress contributes to the formation of
This statute allows the President to
This statute allows the USTR to suspend
U.S. trade policy pursuant to its constitutional
adjust imports through tariffs or quantitative
trade agreement concessions or impose
authority over tariffs and foreign commerce.
restrictions (quotas) if the Department of
import restrictions if it determines a U.S.
Through the Trade Act of 1974 and the Trade
Commerce finds products are imported
trading partner is “violating trade agreement
Expansion Act of 1962, Congress delegated
in such quantities or circumstances as to
commitments or engaging in discriminatory
some aspects of its constitutional authority to
“threaten to impair U.S. national security.”
or unreasonable practices that burden
regulate foreign commerce to the President.
The Section 232 investigation on aluminum
or restrict U.S. commerce.” Section 301
Pursuant to these acts, the President, based
and steel products provided for 10% tariffs
investigations were launched against China.
on agency investigations, may impose import
on a specified list of aluminum imports,
On July 6, 2018, the United States imposed
restrictions to address specific concerns. See
effective indefinitely. The tariffs imposed
a Stage 1, 25% tariff on 818 Chinese
U.S. Trade Policy: Background and Current
on aluminum imports affect all countries
imports. On August 23, 2018, the United
Issues, https://crsreports.congress.gov/
except Australia, Canada, and Mexico. For
States imposed a Stage 2, 25% tariff on an
product/pdf/IF/IF10156 and Escalating U.S.
Argentina, quantitative import restrictions
additional 279 imports. On September 24,
Tariffs: Timeline, https://crsreports.congress.
were imposed in place of tariffs. Tariffs on
2018, in response to Chinese retaliatory
gov/product/pdf/IN/IN10943.
aluminum imports became effective March
tariffs, the United States imposed a Stage
The Trump administration differs from
23, 2018. This section provides for 25%
3, 10% tariff that was increased to 25% on
prior administrations on trade policy. One
tariffs on a specified list of steel imports.
5,733 more imports. On August 14, 2019,
way it proceeds differently is by placing
The tariffs imposed on steel imports affect
the USTR released a two-part plan to impose
emphasis on the trade deficit as an indicator
all countries except Australia, Canada, and
10% tariffs on approximately $300 billion of
of “unfair” foreign trade practices that
Mexico. For Argentina, Brazil, and South
imports. The first part of this plan, stage 4A,
impact U.S. industries. To address this
Korea, quantitative import restrictions are
will take effect on September 1, 2019. The
issue, the Trump administration proposed
imposed in place of tariffs. Tariffs on steel
second part of the plan, stage 4B, will take
and imposed tariffs and restrictions based
imports became effective March 23, 2018.
effect on December 15, 2019. See Economic
on investigations under U.S. trade laws,
The Trump administration also initiated
and Trade Agreement Between the United
including one—Section 232—that has been
a Section 232 examination on autos and
States of America and the People’s Republic
used infrequently by prior administrations.
auto parts but missed its 2019 deadline for
of China, https://ustr.gov/sites/default/
The trade laws used for most of the Trump
imposing such tariffs. Currently, no tariffs
files/files/agreements/phase%20one%20
administration trade actions are Sections
are in effect on autos and parts, pending
agreement/US_China_Agreement_Fact_
301, Section 201, and Section 232 of the
negotiations.
Sheet.pdf.
Trade Expansion Act of 1962. See U.S. Trade
Timeline, https://crsreports.congress.gov/
See Escalating U.S. Tariffs:
Policy: Background and Current Issues, 14
Currents 24.1 2020
