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Section 201 Safeguards

Section 201 or “safeguard” actions are steps the President can take to provide temporary relief for an industry through the imposition of tariffs or quotas to create a more competitive environment for said industry. Section 201 actions are considered consistent with U.S. international obligations if they conform to the World Trade Organization’s Agreement on Safeguards. To enact Section 201 Safeguards, a U.S. company must first file a complaint with the International Trade Commission, which then makes a determination if the industry is injured by the importation of the goods in question. If the investigation is affirmative, the President may enact the safeguards. 

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Ultimate Phase One Trade Deal ‘Remedy’ Is to 'Withdraw' Under ‘Bad Faith’ Negotiations, Text Says
January 21, 2020 by Paul Gluckman|Tariffs and Trade Negotiations

The phase one “economic and trade agreement” the U.S. and China signed Jan. 15 will take effect in 30 days and can be terminated by either country with 60 days' written notice, the deal's text said. Phase one is “a big step toward normalizing our trading relationship with China,” the Consumer Technology Association said, but “market uncertainty remains until we see permanent tariff removal.” The National Retail Federation also welcomed phase one but said phase two “can’t come soon enough.”

EU Revokes End Use Procedures for Automotive Steel TRQ
January 17, 2020 |Europe

The European Union is amending procedures for automotive coated steel sheet imports by the automotive sector under safeguards implemented in response to U.S. Section 232 tariffs. The European Commission says procedures for demonstrating end use in the automotive industry -- required to qualify for a special tariff-rate quota only for the automotive sector (see 1909270022) -- have been difficult to implement, causing supply chain disruptions for affected companies. The commission is now revoking those end use procedures, and increasing the amount allowed under the TRQ for regular steel sheet to account for additional imports by the automotive sector as a result of difficulty implementing the end use procedures for the special TRQ. The changes take retroactive effect Oct. 1, 2019.

EU Proposes Changes to Steel Safeguards
August 15, 2019 |Europe

The European Union is considering changes to its global safeguards on steel products in effect since July 2018 in response to U.S. Section 232 tariffs, the European Commission said in an Aug. 14 press release. According to a recent notification to the World Trade Organization, the EU is considering changes to tariff-rate quotas on several steel products, as well as a general slowing of increases on the quotas.

Canada, Mexico Formally End Retaliatory Tariffs on US
May 21, 2019 |Top News

Canada and Mexico each on May 20 ended their retaliatory tariffs on U.S. goods in response to the end of U.S. Section 232 tariffs on steel and aluminum products from the two countries (see 1905170058). General safeguard duties set by each country remain in place but don’t affect U.S. exports.