Trade court strikes down Trump global tariffs imposed after Supreme Court loss - The Hill

The U.S. Court of International Trade (CIT) has recently struck down tariffs on steel and aluminum imports that were re-imposed by the Trump administration in August 2020. This significant ruling impacts importers who have paid these additional duties, potentially opening avenues for refunds.

The tariffs in question were 25% on steel products and 10% on aluminum products. They were re-imposed on imports from Brazil, South Korea, Argentina, and Australia. This action followed a decision by the Supreme Court not to hear an appeal from the Trump administration regarding its authority to impose tariffs under Section 232 of the Trade Expansion Act of 1962. The CIT ruled that the President had already exercised his authority under Section 232(b) once, and the statute does not grant the power to re-exercise it for the same national security threat. This decision represents a notable limitation on executive power under Section 232.

Who is Affected and What Rates/Dates Apply?

• Affected Importers: Businesses that imported steel and aluminum products from Brazil, South Korea, Argentina, and Australia and paid the additional 25% (steel) or 10% (aluminum) tariffs since August 2020.
• Tariff Rates: The specific tariffs struck down were 25% for steel and 10% for aluminum.
• Applicable Dates: The ruling pertains to tariffs re-imposed starting in August 2020.

This ruling could lead to refunds for importers who paid these tariffs. It also carries broader implications for the scope of presidential authority to impose tariffs under Section 232 of the Trade Expansion Act of 1962. The Biden administration has the option to appeal this decision to the U.S. Court of Appeals for the Federal Circuit.

What Importers Should Do

Given this development, importers who have paid the 25% tariffs on steel or 10% tariffs on aluminum from Brazil, South Korea, Argentina, or Australia since August 2020 should take the following steps:

• Review Import Records: Carefully examine all import entries for steel and aluminum from the affected countries made during and after August 2020 to identify entries subject to these tariffs.
• Consult Experts: Engage with your customs broker or trade legal counsel to understand the full implications of this ruling for your specific import operations. They can provide guidance on potential refund claims and the necessary procedures.
• Monitor Developments: Stay informed about any appeals filed by the Biden administration. The final outcome of this legal process will determine the long-term impact and the definitive path for tariff recovery.