Bipartisan Bill to Reform Section 232 Reintroduced
Sen. Pat Toomey, R-Pa., one of the original advocates for narrowing the authority of the executive branch to impose national security tariffs or quotas, has once again introduced a bipartisan bill to reform the legislation that delegated that authority. Toomey, joined by Sen. Mark Warner, D-Va., six other Democrats and 10 other Republicans, said the prior administrations abused Section 232 tariffs "to protect favored industries, which has resulted in economic disruption, damage to U.S. relationships with our allies, and harmful retaliatory tariffs on American farmers and manufacturers."
Sign up for a free preview to unlock the rest of this article
Communications Daily is required reading for senior executives at top telecom corporations, law firms, lobbying organizations, associations and government agencies (including the FCC). Join them today!
The press release said the previous administration used Section 232 "widely," and noted that a quarter of all investigations under the statute happened during that Trump administration, though the law was passed 60 years ago.
Congress would have to approve these tariffs or quotas before they go into effect if the bill became law. It would also give Congress the opportunity to undo 25% tariffs on imported steel and 10% tariffs on imported aluminum. While the bill has many Senate Finance Committee members as co-sponsors, Chairman Ron Wyden, D-Ore., is not among them.
The committee's top Republican, Sen. Mike Crapo of Idaho, is a co-sponsor, which suggests the bill could get traction if Republicans regained control of the Senate in 2023.
“For too long, Congress has allowed presidents to unilaterally impose tariffs by invoking spurious claims of ‘national security’ -- regardless of whether or not the import in question poses any genuine threat to national defense," Toomey said. The statute would narrow the definition of national security so that it only applies to critical infrastructure, energy and military equipment, and the components of that equipment.
Warner said, "It will also help guarantee that any efforts to crack down on unfair or illegal trade practices are strategic, and done in concert with our allies.” Sixteen trade groups have endorsed the bill, including industries that are metal purchasers, the U.S. Chamber of Commerce and the American Apparel and Footwear Association.