Presidential memorandum prioritizes Commerce steel investigation

President Trump has signed a presidential memorandum calling on Secretary Wilbur Ross to prioritize a Department of Commerce investigation into the effects of steel imports on U.S. national security. The study will consider production and capacity, workforce, investment, research and development, and other factors to determine whether steel imports threaten American security.

After a thorough investigation, if any national security threats from steel imports are identified, Secretary Ross will provide a report that includes recommendations for next steps. Under Section 232 of the Trade Expansion Act, the president has broad power to adjust imports—including through the use of tariffs and quotas—if excessive foreign imports are found to be a threat to U.S. national security.

“We will conduct this investigation thoroughly and expeditiously so that, if necessary, we can take actions to defend American national security, workers, and businesses against foreign threats,” said Ross. “This investigation will help determine whether steel import issues are making us less safe in a world that is increasingly fraught with geopolitical tensions.”

According to the Commerce Department, the U.S. is relatively unusual in that it has no tariffs on steel but has had to impose antidumping or countervailing duties in 152 cases, with 25 more currently pending.

The U.S. steel industry has struggled in recent years, raising concerns about the industry’s ability to support national security needs. Industry employment has been declining, companies are highly leveraged, and businesses remain both capital-intensive and lacking strong cash flow. Imports now represent 26 percent of the market, and the U.S. steel mills and foundries are operating at just 71 percent of capacity.

The investigation will include a formal request for public comment, to be published in the Federal Register followed by a public hearing.