US court delivers fresh blow to Trump's tariff strategy - Le Monde.fr

A recent decision by the U.S. Court of International Trade (CIT) has ruled against the legality of certain Section 232 tariffs imposed by the Trump administration. Specifically, the court found that the proclamation reimposing a 10% tariff on aluminum imports from the United Arab Emirates (UAE) was unlawful. This ruling stems from the court's interpretation of the President's authority under Section 232 of the Trade Expansion Act of 1962, determining that the power to modify such tariffs expires 90 days after the Secretary of Commerce submits their initial report.

The background to this decision traces back to March 2018, when the Trump administration initially imposed Section 232 tariffs globally: 25% on steel and 10% on aluminum, citing national security concerns. Over time, some countries, including the UAE, were granted exemptions from these tariffs in exchange for quota agreements. However, in February 2020, the 10% aluminum tariff was reimposed on the UAE. The critical point of the CIT's ruling is that the Secretary of Commerce's report, which triggered the initial Section 232 actions, was submitted in January 2018. This means the 90-day statutory window for the President to modify these tariffs would have closed in April 2018. The February 2020 proclamation, therefore, fell well outside this legally defined timeframe.

This ruling directly affects importers of aluminum products from the UAE who paid the 10% tariff reimposed in February 2020. These importers may now have grounds to seek refunds for duties paid on those entries. Beyond the immediate impact on UAE aluminum, this decision could have broader implications. It potentially opens the door for challenges to other Section 232 tariffs or modifications that were implemented beyond the 90-day statutory period following the initial Commerce Department report. This represents a significant development for trade compliance professionals, as it scrutinizes the procedural limits of presidential authority in imposing national security tariffs.

Given this ruling, importers should take several proactive steps. Firstly, review all past import entries of aluminum products from the UAE that were subject to the 10% Section 232 tariff reimposed in February 2020. Secondly, it is highly advisable to consult with legal counsel to understand the specific implications for their operations and to explore potential avenues for duty refunds. Furthermore, importers should assess any other Section 232 tariffs they have paid or are currently paying to determine if those tariffs or their modifications were also imposed outside the 90-day statutory window, as this ruling could set a precedent for future challenges.