President Biden has decided to keep steel tariffs in place, thus siding with former President Donald Trump’s administration. On Monday, the US Supreme Court rejected the appeal brought by USP Holdings, which claimed that the Trump administration had improperly enacted the tariffs.
The Biden administration, in turn, argued against USP Holdings and other steel importers who claimed that they were damaged by the tariffs. The Alliance for American Manufacturing’s President, Scott Paul, applauded the decision, saying that the Biden administration understands that lifting the steel tariffs without any solution in place could cause layoffs and plant closures in states such as Pennsylvania and Ohio, where the impact would be felt not only economically but also politically.
Former President Trump enacted steel tariffs based on Section 232 of the Trade Act of 1962, which permits the president to impose restrictions on the importation of goods deemed essential to national security. At the time, Trump stated that the tariffs were necessary to bolster the production of airplanes, ships, and military materials with U.S. steel. The policy created tension with some U.S. allies, although some countries were exempted from the policy.
The decision to uphold the steel tariffs will ensure that the U.S. continues to produce steel domestically, which is necessary for national security. The tariffs have protected the U.S. steel industry from being undermined by foreign competition and allowed the industry to grow. The U.S. has also been able to create jobs in the steel industry, which has helped boost the economy.
The Supreme Court’s decision to reject the appeal brought by USP Holdings and keep the tariffs in place is a win for the U.S. steel industry and the U.S. economy. The decision ensures that the U.S. can continue to produce steel domestically, which is necessary for national security.
