U.S. flag

An official website of the United States government

Dot gov

Official websites use .gov
A .gov website belongs to an official government organization in the United States.

Https

Secure .gov websites use HTTPS
A lock () or https:// means you’ve safely connected to the .gov website. Share sensitive information only on official, secure websites.

Freedom 250 LogoFreedom 250: Celebrating the Triumph of the American Spirit

  1. Home
  2. Issues
  3. Trade Enforcement

Section 232 Investigation on the Effect of Imports of Steel on U.S. National Security

Trade enforcement

Tariff Exclusion Process Announced on 3/18/2018

Presidential Proclamation on 3/8/2018

Section 232 Investigation Report Released on 2/16/2018

Public Comments and 5/24/17 Hearing

Documents and Notices:

Press Release: Presidential Memorandum Prioritizes Commerce Steel Investigation

View original press release

Today President Donald J. Trump signed a presidential memorandum calling on Secretary Wilbur Ross to prioritize a Department of Commerce investigation initiated last night into the effects of steel imports on US national security. The study will consider overcapacity, dumping, illegal subsidies, and other factors, to determine whether steel imports threaten American economic security and military preparedness.

“We are going to fight for American workers and American-made steel by conducting a thorough investigation into steel imports,” said President Trump. “Thanks especially to Secretary Wilbur Ross for helping lead this critical effort.”

After a thorough investigation, if any national security threats from steel imports are identified, Secretary Ross will provide a report that includes recommendations for next steps. Under Section 232 of the Trade Expansion Act, the President has broad power to adjust imports — including through the use of tariffs — if excessive foreign imports are found to be a threat to US national security.

“We will conduct this investigation thoroughly and expeditiously so that, if necessary, we can take actions to defend American national security, workers, and businesses against foreign threats,” said Secretary Ross. “This investigation will help determine whether steel import issues are making us less safe in a world that is increasingly fraught with geopolitical tensions.”

The United States is relatively unusual in that it has no tariffs on steel but has had to impose antidumping or countervailing duties in over 150 cases, with 13 more currently pending.

Our military often needs specialty steel alloys that require unusual production skills and are used for armor, vehicles, ships, aircraft, and infrastructure. As a result, a robust and healthy domestic steel production industry may be deemed necessary to guarantee military supply chains in the event of conflict.

While these defense concerns continue to loom, the US steel industry has struggled in recent years. Industry employment has been declining, companies are highly leveraged, and businesses remain both capital intensive and lacking strong cash flow. Imports now represent 26% of the market and the US steel mills and foundries are operating at just 71% of capacity.

The investigation will include a formal request for public comment to be published in the Federal Register, followed by a public hearing.

Please visit www.commerce.gov/steel for more information on this investigation.

Remarks by Secretary Ross as Prepared For Delivery

Thank you, Mr. President, for your leadership on this and so many other important issues.

I proud to stand here today and say that, under your leadership, we are restoring the primacy of American national security, American workers, and American businesses.

For years, we have simply reacted to over 150 cases of improper imports of foreign steel into this country.

With our investigation launched last night, the federal government will finally become proactive.

This investigation will help ensure steel import issues do not make us less safe in a world that is increasingly fraught with geopolitical tensions.

The sheer volume of steel trade cases makes it clear that global steel overcapacity has an impact on our economy, but for the first time we will examine its impact on our national security.

We will conduct this investigation thoroughly and expeditiously so that we can fully enforce our trade laws and defend this country against those who would do us harm.

I look forward to the completion of this investigation so that I can report not just the findings, but also any concrete solutions that we may deem appropriate.

Thank you again Mr. President.

Back to top

Fact Sheet: President Donald J. Trump: Standing Up to Unfair Steel Trade Practices

View original fact sheet

PRESIDENT DONALD J. TRUMP: STANDING UP TO UNFAIR STEEL TRADE PRACTICES
“We're going to use American steel, we're going to use American labor, we are going to come first in all deals.” – President Donald J. Trump

A JUSTIFIABLE AND NECESSARY ACTION: As imports of steel to the United States continue to rise, an examination of foreign practices is urgently needed.

  • Despite America’s existing domestic steel industry, imports of steel into the United States have risen 19.6 percent between February 2016 and February 2017.
  • Recent reports by the United States International Trade Commission (USITC) have found that steel imports injure the United States steel industry.
    • The USITC has found domestic steel makers are harmed where nations that export steel products to the United States unfairly subsidize their products or sell them at artificially low price.

TAKING STEPS TO PUT AMERICA’S STEEL INDUSTRY FIRST: President Donald J. Trump is taking action to ensure America’s steel industry comes first, in addition to his Buy American and Hire American policies.

  • Today, the President signed a Presidential Memorandum prioritizing an investigation initiated by the Secretary of Commerce into whether steel imports threaten to impair the national security.
    • The investigation is being conducted under Section 232 of the Trade Expansion Act of 1962.
  • The Secretary of Commerce is directed to expedite his investigation of the effects of steel imports on the national security to determine the following:
    • Whether steel imports cause American workers to lose jobs which are needed to meet security requirements of the domestic steel industry.
    • Any negative effects of steel imports on government revenue.
    • Any harm steel imports cause to the economic welfare of the United States, recognizing the close relationship between economic prosperity and national security.
  • By law the investigation must be concluded and a report submitted within 270 days.
  • If the report concludes that steel imports threaten to impair the national security, and the President concurs, he may take several actions, including tariffs, to eliminate the negative effects of steel imports on the national security of the United States.

KEEPING HIS PROMISE TO THE AMERICAN PEOPLE: President Trump promised that he would scrutinize U.S. steel imports and seek a revitalization of the American steel industry.

  • Then-Candidate Trump:
    • Observed that foreign nations are “dumping vast amounts of steel all over the United States, which essentially is killing our steelworkers and steel companies.”
    • Promised that “we will put new American steel into the spine of this country.”
    • Promised that “We’re going to use American steel, we’re going to use American labor, we are going to come first in all deals.”

Back to top

Fact Sheet: Section 232 Investigations: The Effect of Imports on the National Security

View original fact sheet

FACT SHEET
Section 232 Investigations: The Effect of Imports on the National Security

Section 232 of the Trade Expansion Act of 1962 (19 U.S.C. §1862) authorizes the Secretary of Commerce to conduct comprehensive investigations to determine the effects of imports of any article on the national security of the United States. Section 232 investigations include consideration of:

  • domestic production needed for projected national defense requirements;
  • domestic industry’s capacity to meet those requirements;
  • related human and material resources;
  • the importation of goods in terms of their quantities and use;
  • the close relation of national economic welfare to U.S. national security;
  • loss of skills or investment, substantial unemployment and decrease in government revenue; and
  • the impact of foreign competition on specific domestic industries and the impact of displacement of any domestic products by excessive imports.

Section 232 requires that the Secretary notify the Secretary of Defense that an investigation has been initiated. The Secretary also consults with the Secretary of Defense regarding methodological and policy questions raised in the investigation and can seek information and advice from other government agencies.

The Secretary’s report to the President, prepared within 270 days of initiation, focuses on whether the importation of the article in question is in such quantities or under such circumstances as to threaten to impair the national security. The President can concur or not with the Secretary’s recommendations, and, if necessary, take action to “adjust the imports of an article and its derivatives.” In addition, the Secretary can recommend, and the President can take, other lawful non-trade related actions necessary to address the threat.

Since 1980, the Commerce Department has conducted fourteen Section 232 investigations. Past investigations and remedies have included the following:

  • Integrated Circuit Ceramic Packaging – 1992
    • Defense provided research and development funding for industry
  • Antifriction Bearings – 1988
    • Implementation of Buy American restrictions on super precision bearings for jet engines and miniature and instrument precision bearings for guidance systems
  • Metal Cutting and Forming Machine Tools – 1986
    • Voluntary restraint agreements with multiple countries on imports and an aggressive domestic industry competitiveness action plan

For more information about Section 232 investigations, please visit: www.bis.doc.gov/232

Back to top

Section 232 Notification Letter to Secretary of Defense James Mattis (2017-04-19)

Download PDF of original letter

April 19, 2017

The Honorable James N. Mattis
Secretary of Defense
Washington, DC 20301-3010

Dear Mr. Secretary:

I am writing to notify you that I am initiating an investigation to determine the effects of imported steel on national security. I am taking this action pursuant to Section 232 of the Trade Expansion Act of 1962, as amended. Section 232 authorizes the Secretary of Commerce to initiate such an investigation and requires notice to be provided to the Secretary of Defense upon initiation of an investigation.

During the course of the investigation, Department of Commerce staff will consult with their counterparts in the Department of Defense regarding any methodological and policy questions that arise during the investigation. The investigation report will include information the Department of Defense can provide regarding the national defense requirements for steel. I look forward to our collaboration on this important issue.

Our point of contact is Brad Botwin, Director, Industrial Studies, Office of Technology Evaluation, Bureau of Industry and Security. Mr. Botwin can be reached at [email protected] and (202) 482-4060.

Sincerely,
Wilbur Ross

Back to top

Notice Request for Public Comments and Public Hearing on Section 232 National Security Investigation of Imports of Steel

Download PDF of original notice

DEPARTMENT OF COMMERCE
Bureau of Industry and Security
(Docket No. )

Notice Request for Public Comments and Public Hearing on Section 232 National Security Investigation of Imports of Steel

AGENCY: Bureau of Industry and Security, Office of Technology Evaluation, U.S. Department of Commerce.

ACTION:
Notice of request for public comments and public hearing on section 232 national security investigation of imports of steel.

SUMMARY: The Secretary of Commerce initiated an investigation to determine the effects on the national security of imports of steel. This investigation has been initiated under section 232 of the Trade Expansion Act of 1962, as amended (19 U.S.C. 1862). Interested parties are invited to submit written comments, data, analyses, or other information pertinent to the investigation to the Department of Commerce's Bureau of Industry and Security. The Department of Commerce will also hold a public hearing on the investigation on May 24, 2017 in Washington, D.C. This notice identifies the issues on which the Department is interested in obtaining the public' s views. It also sets forth the procedures for public participation in the hearing.

DATES: Comments may be submitted at any time but must be received by May 31, 2017.

The hearing will be held on May 24, 2017 at the U.S. Department of Commerce auditorium, 1401 Constitution Avenue, NW, Washington, DC 20230. The hearing will begin at 10:00 am local time and conclude at 1 :00 pm local time.

ADDRESSES:
Written comments: Send written comments to Brad Botwin, Director, Industrial Studies, Office of Technology Evaluation, Bureau of Industry and Security, U.S. Department of Commerce, 1401 Constitution Avenue, NW, Room 1093, Washington, DC 20230 or by email to