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US Congress faces a no-win tariff legal wrangle

by Priya Shah – Business Editor

WASHINGTON, Oct 26 – the U.S. Congress is bracing for a complex legal battle over President Joe biden’s use of tariffs, possibly‍ pitting ​lawmakers‍ against the executive branch and‍ disrupting the administration’s trade strategy. The dispute centers on whether‌ Biden exceeded his authority when imposing tariffs under ⁣Section 232 of the Trade ⁤Expansion Act of 1962, originally intended for national security concerns.

The core of the conflict lies in a⁢ recent court ruling questioning the legal basis for tariffs imposed on steel and aluminum imports during the Trump ⁤administration, which Biden has largely maintained. While the Biden administration argues these tariffs are vital for protecting domestic industries and national security,⁢ critics contend they are being used for broader economic leverage, exceeding the ‌scope⁢ of the law. Several lawsuits, including one‌ brought by the United Steelworkers union, challenge the​ tariffs’ ⁢legality, arguing they harm downstream manufacturers ‍and ‍consumers.​

Section 232 allows the president to impose tariffs on imports ‌deemed a threat to national security. The law doesn’t ​explicitly define ⁣”national ⁢security,” leaving room for‌ interpretation. The Trump⁤ administration invoked Section 232‌ to impose tariffs on steel and aluminum in ⁤2018, citing‌ concerns about U.S. steel and aluminum industries and their impact on national‍ defense. Biden continued these tariffs, adding exemptions for some countries while maintaining the core structure.

The legal ‍challenge gaining traction argues the administration⁢ hasn’t adequately demonstrated a direct link ⁣between steel and aluminum imports and genuine national security threats. A federal court has⁤ indicated it may require a more rigorous justification for the tariffs, potentially forcing the administration to revise its approach.

Congress‍ now faces a dilemma. Lawmakers could attempt to clarify Section 232 through legislation, defining “national security” more precisely and potentially limiting the president’s authority. however, any such legislation would ‍require bipartisan support, a challenging prospect in the current political climate. Alternatively, Congress could allow the courts to resolve the issue, ‍risking a ruling that significantly restricts the president’s trade powers.

The outcome of‌ this legal wrangle has significant ‍implications. A ‌court ruling against ‌the administration could force it to remove ‌the tariffs, ⁢potentially leading to retaliatory measures from other countries.It could also embolden other industries to seek protection under Section 232, further complicating trade relations. Conversely, ⁤a favorable ruling for the administration would solidify its authority to use tariffs as a tool for economic policy, potentially escalating trade tensions with allies and adversaries alike.

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