The United Steelworkers union (USW) on April 18 filed a petition with the U.S. International Trade Commission (ITC) for the U.S. to invoke a global safeguard under Section 201 of U.S. trade law and impose tariffs of up to 50 percent on primary unwrought aluminum.

This proceeding could have significant impacts on global aluminum producers and U.S. importers and users of aluminum products.

The timetable is very brief: The ITC must decide within 60 days whether the conditions for “critical circumstances” are met and whether to recommend provisional relief.  Once the ITC has made its decision on the critical circumstances claim, regardless of whether or not it recommended provisional relief, it will begin its underlying investigation under Section 201. The underlying ITC investigation typically takes 120 days – although it is allowed to take 150 days for complicated cases – and the ITC then has another 60 days to develop relief recommendations for the President. The ITC’s recommendations are then sent to the United States Trade Representative (USTR) which formulates a recommendation to the President who then has 50-60 days to decide whether or not to grant final phase relief.

The ITC and USTR will hear from both sides: The question for the ITC is whether primary aluminum is being imported into the United States “in such increased quantities as to be a substantial cause of serious injury, or the threat thereof” to the U.S. aluminum industry. The ITC will seek input from all market participants: U.S. producers, foreign producers, U.S. importers, and U.S. users. The President, through USTR, has the final say on any remedy recommended by the ITC, after further input from affected parties.

Invoking Section 201 safeguard measures is very rare. The last time was in the early 2000’s when President Bush imposed import restrictions on certain steel products.  The process ahead is certain to be factually, legally and politically intense.

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Photo of John K. Veroneau John K. Veroneau

Ambassador John Veroneau is a Chambers-ranked international trade lawyer in the firm’s International Trade Practice Group. Having served in senior positions in both Executive and Legislative branches, he provides legal and strategic advice to clients on a broad range of international trade matters.

Ambassador John Veroneau is a Chambers-ranked international trade lawyer in the firm’s International Trade Practice Group. Having served in senior positions in both Executive and Legislative branches, he provides legal and strategic advice to clients on a broad range of international trade matters. Ambassador Veroneau held Senate-confirmed positions under President Bush as Deputy United States Trade Representative (USTR) and USTR General Counsel, and under President Clinton as an Assistant Secretary of Defense.

Photo of Shara Aranoff Shara Aranoff

Shara helps clients navigate trade remedies, tariffs, and customs regulations in support of their U.S. and global market strategies.

Shara is the Chair of Covington’s International Trade Practice Group, and co-leads the Customs practice.

Drawing on her 20 years of service in the…

Shara helps clients navigate trade remedies, tariffs, and customs regulations in support of their U.S. and global market strategies.

Shara is the Chair of Covington’s International Trade Practice Group, and co-leads the Customs practice.

Drawing on her 20 years of service in the U.S. government, she develops legal and public policy strategies to assist clients engaging with the U.S. International Trade Commission (ITC), U.S. Customs and Border Protection (CBP), Congress, and the courts. In high-stakes antidumping and countervailing duty investigations, Shara helps global manufacturers, distributors, and retailers protect their access to the U.S. market. She assists technology, life sciences and manufacturing companies enforce and defend their intellectual property rights in cross-border Section 337 investigations. Chambers praises her for bringing “behind-the-curtain knowledge to the private sector” in proceedings before the ITC by leveraging her experience as a decision maker.

Shara also regularly advises clients in a wide range of industries on Customs compliance and tariff mitigation, including:

  • Providing legal opinions or seeking Customs rulings on classification, valuation, country of origin, and product marking/labelling.
  • Conducting internal compliance reviews, drafting compliance policies, and providing training.
  • Responding to CBP audits and inquiries and filing voluntary disclosures.
  • Developing strategies to reduce tariffs and take advantage of trusted trader programs.

Prior to joining the firm, Shara was a Commissioner and Chairman of the ITC, where she was a decision-maker in hundreds of Section 337, antidumping, countervailing duty, and safeguard investigations.

She previously served as Senior International Trade Counsel for Senator Max Baucus (D-MT) at the U.S. Senate Committee on Finance, where she was responsible for legislative and policy issues including Trade Promotion Authority; negotiations involving the World Trade Organization and free trade agreements; and trade remedy and customs laws. She was also an attorney-advisor in the Office of the General Counsel at the ITC, where she was lead counsel in litigation before the Court of Appeals for the Federal Circuit and the Court of International Trade.