What the latest ruling on Trump’s tariffs could mean for businesses - Yahoo Finance

The U.S. Court of International Trade (CIT) has issued a significant ruling concerning the Section 232 tariffs on steel and aluminum imports from Turkey, finding that the increased tariff rates imposed by the Trump administration were unlawful. This decision could have important implications for businesses that imported these products and paid the higher duties.

Specifically, the CIT ruled that the 50% tariff rate applied to steel imports from Turkey, and the 20% tariff rate on aluminum imports from Turkey, exceeded the statutory authority granted to the President under Section 232 of the Trade Expansion Act of 1962. These increased rates were put into effect on August 10, 2018. The court determined that while the initial Section 232 tariffs of 25% on steel and 10% on aluminum were within the President's authority, the subsequent doubling of these rates for Turkish products was not. The ruling came in response to a lawsuit filed by Borusan Mannesmann Boru Sanayi ve Ticaret A.S., a Turkish steel exporter, and specifically ordered the U.S. government to refund the excess duties paid by Borusan.

Who is Affected?

While the immediate refund order applies directly to Borusan Mannesmann Boru Sanayi ve Ticaret A.S., the ruling sets a significant precedent. Importers of steel and aluminum products from Turkey who paid the higher 50% tariff on steel and 20% tariff on aluminum after August 10, 2018, are potentially affected. This decision suggests that these additional duties were improperly collected, opening the door for other businesses to seek recovery of overpaid tariffs.

What Should Importers Do?

Given this ruling, importers who paid the elevated Section 232 tariffs on Turkish steel and aluminum should take proactive steps to assess their options:

• Review Past Entries: Carefully examine import entries for steel and aluminum products from Turkey made after August 10, 2018, to identify instances where the 50% or 20% tariff rates were applied.
• Consider Filing Protests: Importers may consider filing protests with U.S. Customs and Border Protection (CBP) to challenge the collection of these duties. It is crucial to understand the time limits for filing protests.
• Explore Litigation: Similar to Borusan, other importers may choose to pursue litigation before the U.S. Court of International Trade to seek refunds for the unlawful duties.
• Consult Legal Counsel: It is highly recommended that importers consult with experienced trade legal counsel. An attorney can help evaluate the specifics of their import transactions, determine the best course of action for seeking refunds, and navigate the complex legal and administrative processes involved.

This ruling underscores the dynamic nature of trade policy and the importance for importers to stay informed and diligently review their compliance strategies.