Steel Group Files Lawsuit Over U.S. Tariffs

A lawsuit asks the U.S. Court of International Trade to rule as unconstitutional the statute used by the White House to justify steel and aluminum tariffs on national security grounds.

The complaint by the American Institute for International Steel targets Section 232 of the Trade Expansion Act of 1962. The open-ended measure gives the president broad powers to unilaterally issue tariffs and other trade barriers to protect the U.S. with no provision for judicial review.

President Donald Trump used Section 232 last month to impose taxes on imported steel and aluminum of 25% and 10%, respectively. He appears likely to use the same tool to levy import taxes on all foreign-made cars.

The AIIS complaint argues that Congress erred in 1962 by delegating its constitutional duty to regulate trade to the executive branch. The lobbying group asks that a three-judge panel be appointed to hear the case. Doing so would enable any appeal of the judges’ decision to go directly to the U.S. Supreme Court.

U.S. steelmakers, who have lobbied for import protection for years, say the lawsuit has no merit. Opponents of tariffs, including two major automotive trade groups in the U.S., contend that the sanctions will raise prices and eliminate hundreds of thousands of auto-related job.