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In a monumental decision, the U.S. Supreme Court handed down a resounding blow to opponents of Trump-era national security tariffs on steel and aluminum. On Monday, the high court refused to hear a challenge, marking the final chapter in the legal saga of a Texas importer seeking to undo a 25% levy on imported steel derivative products.

Justices Refuse Steel Duty Challenge : PrimeSource's Hopes Dashed

The Supreme Court's refusal to entertain the petition from PrimeSource Building Products Inc. effectively ends a prolonged legal battle over whether former President Donald Trump had the authority to expand national security tariffs beyond raw steel to encompass downstream products such as nails and staples.

Challenging the President's Powers

PrimeSource's petition contested a Federal Circuit ruling from February, arguing that President Trump did not adhere to the prescribed process when extending the levies from raw steel to items like screws. In 2018, Trump had invoked Section 232 of the Trade Expansion Act to impose 25% and 10% duties on raw steel and aluminum, respectively.

The Federal Circuit had previously ruled that Congress had delegated significant authority to the president to set duties and regulate foreign trade through the Trade Expansion Act of 1962. The court insisted that, unless the president's actions amounted to a "clear misconstruction of the statute," they were obligated to affirm the president's authority, in line with established precedent.

Justices Refuse Steel Duty Challenge : Trump's Rationale for Tariffs

Trump's tariff expansion was underpinned by a U.S. Department of Commerce report, which highlighted the overproduction of steel and aluminum overseas as a potential threat to U.S. producers and, by extension, national security. The ensuing executive order, implementing the initial duties within 90 days of receiving that report, triggered a flurry of litigation, involving the U.S. Court of International Trade and the World Trade Organization. Trump further fanned the flames by extending the tariffs, including doubling duties for Turkish exports, beyond the timelines specified in the Trade Expansion Act.

PrimeSource's Rollercoaster Ride

PrimeSource briefly tasted victory against the Section 232 tariffs in 2021, only to have it swiftly overturned at the Federal Circuit.

Supreme Court's Stance

The Supreme Court has consistently declined to reconsider any of the Federal Circuit's rulings related to the Section 232 tariffs. Notably, in March, they rejected a petition challenging the foundation of the tariffs, asserting that the Commerce Department's report failed to demonstrate an "imminent" threat to national security from foreign metal imports. A year earlier, the justices declined to review a Federal Circuit decision affirming the president's authority to increase duties long after the initial order. In 2020, they dismissed another petition claiming that the Trade Expansion Act itself was invalid due to an alleged overabundance of power vested in the executive branch.

Victory for the Biden Administration

Monday's decision represents a significant win for the Biden administration, which has maintained the tariffs while implementing country-specific adjustments for allies, all the while vigorously defending these tariffs in court. The government explicitly urged the justices not to disrupt the Federal Circuit's decision in a brief submitted last month.