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CIT Grants Stay in Section 232 'Derivative' Challenge Due to DOJ's Likelihood of Success of Appeal

The Court of International Trade granted the Justice Department's motion to stay a case challenging the expansion of Section 232 duties on steel and aluminum "derivatives," in an Oct. 14 order, due in part, to the defendant's likelihood of succeeding…

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on appeal. A majority panel at CIT found in the case that President Donald Trump's 2018 decision to expand the Section 232 duties onto the derivative products was made beyond the 105-day deadline laid out in the Section 232 statute. The court now recognizes that the Court of Appeals for the Federal Circuit's decision in Transpacific Steel LLC, et al. v. U.S., permitting the president to take Section 232 tariff actions beyond procedural deadlines, indicates the DOJ's likelihood of succeeding in its appeal.