Trade as National Security Issue? Here’s What the U.S. Law Says

U.S. President Donald Trump turned to a Cold War-era law to stem the flow of steel imports, part of a campaign pledge to save American industrial jobs. He may do the same on autos. At issue is a little-used part of 1962 trade legislation sometimes called the "nuclear option" or the "big sledgehammer," which invokes national security to counter cheap imports. Such heavy tools can prompt a furious response from other countries, triggering complaints to the World Trade Organization.

Section 232 of the Trade Expansion Act of 1962 allows the president to adjust imports without a vote by Congress should the Department of Commerce find evidence of a national-security threat from foreign shipments. After Commerce Secretary Wilbur Ross, a former steel tycoon, declared that such a threat exists in the metals industry, Trump levied tariffs of 25 percent on imported steel and 10 percent on imported aluminum. On May 23, the U.S. said it’s investigating national-security implications of importing automobiles.