Section 232 Tariffs on Steel – CIT Decision in PrimeSource’s Appeal of Tariffs on Derivative Products

from Fred Waite and Kim Young, AWPA Counsel


A three-judge panel of the U.S. Court International Trade (CIT) has issued a decision in the appeal of Section 232 tariffs on so-called “derivative” steel products by PrimeSource Building Products Inc.

In a 2-1 ruling, the CIT found that former President Trump had violated the deadlines in the statute by improperly extending Section 232 tariffs to these derivative products more two years after the original Section 232 tariffs had been imposed on imports of steel products.  The statute provides that, if the President decides to take action against imports, the President must implement that decision within 105 days after receiving the report and recommendation from the Secretary of Commerce.

The CIT ordered that the Section 232 tariffs which Primesource has paid on imported nails be refunded.

The Government has the right to appeal this decision to the U.S. Court of Appeals for the Federal Circuit.

The “derivative” steel products covered by the extension of Section 232 tariffs are “nails, tacks, drawing pins, corrugated nails, staples and similar articles”; bumper stampings of steel  . . . comprising parts and accessories of motor vehicles”; and “body stampings of steel for tractors suitable for agricultural use”.

There are a number of other appeals which challenge the extension of Section 232 tariffs to derivative products, and it is likely that the CIT will apply this decision in those cases as well.