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Trump's 'Section 232' autos tariff authority mns out of time, experts say

REUTERS, Washington
The clock has run out on President Donald Trump's authority to impose "Section 232" tariffs on imports of foreign-made cars and auto parts, and he may have to find other means if he wants to pursue tariffs on European or Japanese cars, legal experts say. Their view was supported by a new US trade court ruling, published on Monday, that Trump's authority had lapsed in a previous Section 232 investigation on imports of foreign steel.
Trump took no action last Thursday as a deadline to impose the national security tariffs of up to 25 percent on automotive imports from the European Union, Japan or South Korea expired.
Automakers had expected another delay in Trump's tariff decision as his administration pursues broader trade negotiations with the European Union and Japan.
In May, Trump invoked a six-month negotiating period under Seaion 232 of the Trade Expansion Act of 1962, a law aimed at protecting the US Cold War-era defense industrial base. He has hailed the threat of tariffs as a strong negotiating tool to gain leverage over his opponents.
But an initial trade deal with Japan reached in September did not address autos trade, while talks with the EU have not formally started as the two sides remain at odds over the scope of the negotiations.
"I don't see the law as giving the president any options other than take action against imports or determine to take no action and the case is closed," said Jennifer Hillman, a Georgetown University Law School professor and a former World Trade Organization judge.
By not acting by the deadline, Trump has forfeited his authority to impose the Seaion 232 tariffs, added Clark Packard, trade policy counsel with libertarian advocacy group RStreet.org.
In a decision published on Monday, the Court of International Trade ruled that Trump ran out of time on a Seaion 232 investigation of steel imports, when he tried to double the tariffs on Turkish steel to 50 percent in August 2018.
The move aimed at freeing an American pastor detained in Turkey was challenged by an Transpacific Steel LLC, an importer of Turkish steel, which claimed that, among other things, the move came too late to follow proper procedures laid out in the law.
The New York-based federal court, which handles appeals of US duty determinations, ruled in Transpacific's favor and said Trump's "expansive view" of his Seaion 232 powers were "mistaken."
"Although the statute grants the President great discretion in deciding what action to take it cabins the President's power both substantively, by requiring the aaion to eliminate threats to national security caused by imports, and procedurally, by setting the time in which to act," wrote CIT judges Claire Kelly and Jane Restani in the decision dated Nov. 15.