This view has been backed by a new ruling by the United States trade court announced on November 18 that the Trump administration has expired in the previous Section 232 investigation of foreign steel imports. On November 14, President Trump took no action when the deadline for imposing a national security tariff of up to 25% on car imports from the European Union, Japan or South Korea expired. .
Carmakers have taken into account another delay in Trump’s tariff decisions, as U.S. authorities pursue broader trade negotiations with the European Union and Japan. In May, President Trump cited a six-month negotiation period under Section 232 of the Trade Expansion Act of 1962. The threat of tariffs was seen as a powerful negotiating tool for the United States to reach Get leverage against your rivals. But a first-stage trade deal with Japan did not address car deals, while negotiations with the EU have not yet officially started because the two sides still disagree over the scope of the negotiations.
By failing to act on time, President Trump gave up his right to apply Section 232. tariffs. In a decision made on November 18, the International Trade Court ruled that President Trump had expired in the Section 232 investigation of steel imports, when he tried to double tariffs on Turkish steel to 50% in August 2018. Although the US Department of Commerce report has never was announced, but according to a statement from the White House released in May, it was determined that car imports are "weakening the internal US economy" and making "the automobile industry under ownership of the United States ".
Legal experts argue that even if the courts refuse US presidential jurisdiction over Section 232, Mr. Trump could invoke other laws to impose tariffs, including the Economic Power Act. International Emergency is widely applied to impose sanctions and counter terrorist financing. This act does not have a lot of prerequisites to investigate, so this is something the president of the United States can proceed quickly. But the failure to use Section 232 as a basis for tariffs could make US businesses more vulnerable to trade lawsuits at the WTO, which makes an exception to national security issues.
