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The Department of Commerce announced May 5, 2020 its initiation of an investigation under section 232 of the Trade Expansion Act of 1962 to determine whether U.S. national security is being harmed by imports of laminations for stacked cores for incorporation into transformers, stacked and wound cores for incorporation into transformers, electrical transformers, and transformer regulators.

If the DOC (which must consult with the Department of Defense) finds that excessive imports of these goods are a threat to U.S. national security, and the president concurs, the president has the authority to adjust imports, including through the use of tariffs and quotas. Any such actions would be imposed within 15 days of the president’s determination to act.

The DOC has up to 270 days to conclude a section 232 investigation and submit its report and recommendations to the president. Interested parties may submit written comments, data, analysis or other information to the DOC by June 9, 2020. Rebuttal comments are due by June 19, 2020.

For more information on this section 232 investigation and how it may affect your business, please contact trade attorney Kristen Smith at (202) 730-4965.

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