Trade Cases

Section 232 Decision Must Take Effect Within 15 Days of the Announcement

Written by John Packard


Steel buyers and traders of foreign steel who have orders on the books and vessels on the water need to be aware the Section 232 statute states that when the president of the United States receives the recommendation from the U.S. Department of Commerce, he then has 90 days to make an announcement. Once the announcement is made by the president, the resulting action, by statute, must go into effect within 15 days. This means any vessels on the water or product that is on order would be impacted almost immediately once the decision has been made by President Trump.

The rumors are flying regarding the Section 232 steel investigation being conducted by the U.S. Department of Commerce. President Trump’s Press Secretary Sean Spicer reported yesterday that Secretary Wilbur Ross was due to provide the president with an update on the status of the investigation later this week. Many have suggested that this week’s update may actually be the final report with the DOC recommendations.

“It’s coming, and it’s coming very quickly,” trade attorney Lewis Leibowitz told Steel Market Update this afternoon. He went on to say, “This is the first real move this president has made, and the evidence suggests he wants to make a splash with it.”

The rumor mill has suggested special tariffs and other remedies to assist the domestic steel mills may be coming. If that is indeed the case, there may be a much larger negative reaction from the end manufacturers. Earlier today, SMU participated in a conference call with HARDI wholesalers and related manufacturers. One of the manufacturers commented that steel coils they buy are not readily available from domestic steel mills. If foreign steel is blocked, then it may be necessary for them to go to China (or elsewhere) to procure finished products.

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