View source for Trade Expansion Act

{{Short description|1962 US law on tariffs}}
{{Infobox U.S. legislation
| shorttitle = Trade Expansion Act of 1962
| longtitle =
| colloquialacronym =
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| enacted by =
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| public law url =
| cite public law = {{usctc|19|7}}
| cite statutes at large =
| acts amended =
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| introducedin = House of Representatives
| introducedbill =
| introducedby =
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| committees = [[United States House Committee on Ways and Means|House Ways and Means]], [[United States Senate Committee on Finance|Senate Finance]]
| passedbody1 = House
| passeddate1 = June 28, 1962
| passedvote1 = 298–125
| passedbody2 = Senate
| passeddate2 = September 19, 1962
| passedvote2 = 78–8
| conferencedate =
| passedbody3 = Senate
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| passedbody4 = House
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| signedpresident = [[John F. Kennedy]]
| signeddate = October 11, 1962
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The '''Trade Expansion Act''' of 1962 ({{USStatute|87|794|76|872|1962|10|11}}, codified at {{usctc|19|7}}) is an American trade law.<ref>{{Cite journal|last=McAdam|first=Mark|date=2022|title=Making ideas actionable in institutionalism: the case of trade liberalization in Kennedy's foreign economic policy|journal=Journal of Institutional Economics|volume=18 |issue=5 |pages=827–841 |language=en|doi=10.1017/S1744137421000849|s2cid=245040776 |issn=1744-1374|doi-access=free}}</ref>

Section 232 of the act permits the president to impose tariffs based on a recommendation by the [[U.S. Secretary of Commerce|U.S. secretary of commerce]] if "an article is being imported into the United States in such quantities or under such circumstances as to threaten or impair the national security."<ref name="MercerKahn">Shannon Togawa Mercer & Matthew Kahn, [https://www.lawfaremedia.org/article/america-trades-down-legal-consequences-president-trumps-tariffs America Trades Down: The Legal Consequences of President Trump's Tariffs] {{Webarchive|url=https://web.archive.org/web/20240113132653/https://www.lawfaremedia.org/article/america-trades-down-legal-consequences-president-trumps-tariffs |date=2024-01-13 }}, ''Lawfare'' (March 13, 2018).</ref> This section was used only in 1979 and 1982,<ref name="MercerKahn"/> and had not been invoked since the creation of the [[World Trade Organization]] in 1995,<ref>Tom Miles, [https://www.reuters.com/article/us-usa-trade-explainer/trumps-extraordinary-tariffs-idUSKBN1GH2IR Trump's extraordinary tariffs] {{Webarchive|url=https://web.archive.org/web/20180314045526/https://www.reuters.com/article/us-usa-trade-explainer/trumps-extraordinary-tariffs-idUSKBN1GH2IR |date=2018-03-14 }}, Reuters (March 5, 2018).</ref> until [[President Trump]] cited it on March 8, 2018, to impose [[Trump tariffs|tariffs on steel and aluminum]].

==History==
In 1962, Congress granted the [[president of the United States]] unprecedented authority to negotiate tariff reductions of up to 80%. It paved the way for the [[Kennedy Round]] of [[General Agreement on Tariffs and Trade]] (GATT) negotiations, concluding on June 30, 1967, the last day before expiration of the Act.<ref>{{cite journal|first=John B.|last=Rehm|jstor=2196880|title=Developments in the law and institutions of international economic relations: the Kennedy Round of Trade Negotiations|journal=[[The American Journal of International Law]]|publisher=[[American Society of International Law]]|volume=62|issue=2|date=April 1968|pages=403–434|doi=10.2307/2196880}}</ref>

On April 27, 2017, [[United States President|President]] [[Donald Trump]] ordered a review of the aluminum imports and threats to [[national security]] under the Trade Expansion Act of 1962.<ref>{{cite news|last1=Office of the Press Secretary|url=https://www.whitehouse.gov/the-press-office/2017/04/27/presidential-memorandum-secretary-commerce|title=Presidential Memorandum on the Aluminum Imports and Threats to National Security under the Trade Expansion Act of 1962|work=[[whitehouse.gov]]|publisher=[[White House]]|location=[[Washington, D.C.]]|language=en|date=April 27, 2017|access-date=April 27, 2017 |archive-url=https://web.archive.org/web/20170428001350/https://www.whitehouse.gov/the-press-office/2017/04/27/presidential-memorandum-secretary-commerce |archive-date=2017-04-28|url-status=dead|author1-link=White House Office of the Press Secretary}}</ref><ref>{{cite news|url=https://www.usatoday.com/story/news/politics/2017/04/27/ordering-national-security-investigation-trump-could-block-aluminum-imports/100961258/|title=Ordering national security investigation, Trump could block aluminum imports|first=Gregory|last=Korte|work=[[USA Today]]|publisher=[[Gannett Company]]|location=[[McLean, Virginia]]|date=April 27, 2017|access-date=April 27, 2017|archive-date=June 13, 2018|archive-url=https://web.archive.org/web/20180613122243/https://www.usatoday.com/story/news/politics/2017/04/27/ordering-national-security-investigation-trump-could-block-aluminum-imports/100961258/|url-status=live}}</ref><ref>{{cite news|url=https://www.reuters.com/article/us-usa-trade-aluminum-idUSKBN17T044|title=U.S. launches national security probe into aluminum imports|first=David|last=Lawder|work=Reuters|publisher=[[Thomson Reuters]]|location=[[Canary Wharf]], [[London]]|date=April 27, 2017|access-date=April 27, 2017|archive-date=June 12, 2018|archive-url=https://web.archive.org/web/20180612143000/https://www.reuters.com/article/us-usa-trade-aluminum-idUSKBN17T044|url-status=live}}</ref><ref>{{cite news|url=https://abcnews.go.com/Politics/wireStory/trump-order-aluminum-imports-investigation-47049358|title=Trump to order aluminum imports investigation|first1=Jill|last1=Colvin|first2=Paul|last2=Wiseman|work=[[ABC News (United States)|ABC News]]|publisher=[[American Broadcasting Company|ABC]]|location=New York City|agency=Associated Press|date=April 27, 2017|access-date=April 27, 2017|archive-date=April 27, 2017|archive-url=https://web.archive.org/web/20170427105210/http://abcnews.go.com/Politics/wireStory/trump-order-aluminum-imports-investigation-47049358|url-status=live}}</ref><ref>{{cite news|url=http://www.politico.com/story/2017/04/26/trump-aluminum-imports-trade-237665|title=Trump puts aluminum imports in 'national security' crosshairs|first1=Doug|last1=Palmer|first2=Matthew|last2=Nussbaum|work=[[Politico]]|publisher=[[Capitol News Company]]|location=Arlington County, Virginia|date=April 27, 2017|access-date=April 27, 2017|archive-date=May 5, 2021|archive-url=https://web.archive.org/web/20210505150852/http://www.politico.com/story/2017/04/26/trump-aluminum-imports-trade-237665|url-status=live}}</ref> On March 8, 2018, President Trump signed an order to impose the [[Trump tariffs|tariffs on steel and aluminum]] under Section 232 of the act and citing "national security" grounds.<ref name="HorsleyFormal">Scott Horsley, [https://www.npr.org/2018/03/08/591744195/trump-expected-to-formally-order-tariffs-on-steel-aluminum-imports Trump Formally Orders Tariffs on Steel, Aluminum Imports] {{Webarchive|url=https://web.archive.org/web/20191231034502/https://www.npr.org/2018/03/08/591744195/trump-expected-to-formally-order-tariffs-on-steel-aluminum-imports |date=2019-12-31 }}, ''All Things Considered'' (March 8, 2018).</ref>

On May 23, 2018, President Trump "instructed Secretary Ross to consider initiating a Section 232 investigation into imports of automobiles, including trucks, and automotive parts to determine their effects on America's national security.  Core industries such as automobiles and automotive parts are critical to our strength as a Nation."<ref>{{Cite web| title = Statement from the President on Potential National Security Investigation into Automobile Imports| access-date = March 20, 2019| date = May 23, 2018| via = [[NARA|National Archives]]| work = [[whitehouse.gov]]| url = https://trumpwhitehouse.archives.gov/briefings-statements/statement-president-potential-national-security-investigation-automobile-imports/| archive-date = January 20, 2021| archive-url = https://web.archive.org/web/20210120202640/https://trumpwhitehouse.archives.gov/briefings-statements/statement-president-potential-national-security-investigation-automobile-imports/| url-status = live}}</ref><ref name="Vox_Yglesias_20180620">{{Cite web| last = Yglesias| first = Matthew| title = Commerce Secretary Wilbur Ross is tied up in major financial conflicts of interest| work = Vox| access-date = March 20, 2019| date = June 20, 2018| url = https://www.vox.com/2018/6/20/17479170/wilbur-ross-corruption| archive-date = March 21, 2019| archive-url = https://web.archive.org/web/20190321173312/https://www.vox.com/2018/6/20/17479170/wilbur-ross-corruption| url-status = live}}</ref><ref name="Forbes_Alexander_20180618">{{Cite news| title = Lies, China And Putin: Solving The Mystery Of Wilbur Ross' Missing Fortune| access-date = March 20, 2019| date = June 18, 2018| url = https://www.forbes.com/sites/danalexander/2018/06/18/lies-china-and-putin-solving-the-mystery-of-wilbur-ross-missing-fortune-trump-commerce-secretary-cabinet-conflicts-of-interest| archive-date = March 20, 2019| archive-url = https://web.archive.org/web/20190320111930/https://www.forbes.com/sites/danalexander/2018/06/18/lies-china-and-putin-solving-the-mystery-of-wilbur-ross-missing-fortune-trump-commerce-secretary-cabinet-conflicts-of-interest/| url-status = live}}</ref><ref group="Notes">Following weeks of investigation, ''[[Forbes]]'' published the results in a June 18, 2018 article in which they expressed concerns about Wilbur Ross' financial conflicts, for example in regards to the Section 232 tariffs and the International Automotive Components Group, that Ross had created by "merging several formerly separate automotive interior companies". ''Forbes'' said that it was problematic that Trump's "instructions" to "Secretary Ross to consider initiating a Section 232 investigation into imports of automobiles, including trucks, and automotive parts to determine their effects on America's national security" were problematic because the U.S. imposition of "new taxes on imports of foreign cars and car parts" would "obviously...have a direct bearing on the fortunes of Ross's car parts company."</ref>

In mid-February 2019, [[United States Department of Commerce|Commerce Department]] secretary [[Wilbur Ross]] delivered a confidential report to President Trump which concluded the Department's investigation under Section 232, that there was a legal rationale for the imposition of steep tariffs on the import of foreign automobiles, as these imports—like steel and aluminum—posed a threat to U.S. national security. According to a March 20, 2019, article in ''[[Politico]]'', the proposed tariffs could be as high as 25%.<ref name="Politico_Johnson_20190320">{{Cite news| last1 = Johnson| first1 = Eliana| last2 = Restuccia| first2 = Rew| title = Trump administration withholds report justifying 'shock' auto tariffs| work = [[Politico]]| access-date = March 20, 2019 |date= March 20, 2019| url = https://politi.co/2Wb4LIA}}</ref><ref group="Notes">According to a March 20, 2019 article in ''[[Politico]]'', Trump's "allies" said that he "wants to impose a "ring tax" around U.S. borders to protect the country from foreign imports."</ref> ''Politico'' also reported that as of March 20, the requests by the chair of the [[United States Senate Committee on Finance|Senate Finance Committee]]—[[Chuck Grassley]] (R-[[Iowa]]) to access a copy of the confidential report, had been denied.<ref name="Politico_Johnson_20190320"/> The deadline for Trump's decision on the imposition of the tariffs is in mid-May, ninety days after the report's release.<ref name="Politico_Johnson_20190320"/>

==See also==
* [[Trade Act of 1974]]
* [[Smoot–Hawley Tariff Act]]

==Notes==
{{reflist|group="Notes"}}

==References==
{{reflist|30em}}


{{US tax acts|state=expanded}}

[[Category:1962 in American law]]
[[Category:1962 in American politics]]
[[Category:United States federal trade legislation]]
[[Category:1962 in international relations]]
[[Category:Presidency of John F. Kennedy]]
[[Category:October 1962 events in the United States]]