Section 232 of the US Trade Expansion Act, 1962
National Security Tariffs
Section 232 allows the US President to impose trade restrictions if an investigation by the Department of Commerce finds that certain imports threaten national security. It has been used by the Trump administration (first and second terms) to impose tariffs on steel and aluminium globally.
- Current Section 232 tariffs on India: Steel — 25%; Aluminium — 50% (elevated in second Trump term from 10%).
- WTO challenge: India filed a WTO dispute against Section 232 tariffs in 2018, arguing they violate GATT Article II (tariff bindings) and are not justified under Article XXI (national security exception). A WTO panel ruled against the US in 2022, but the US has not complied.
- GATT Article XXI (Security Exception): Allows WTO members to take measures "necessary for the protection of its essential security interests" — the US argues tariff imposition is within this discretion; WTO panels have held that the exception is not self-judging and must be applied in good faith.
- India's steel and aluminium exports to US: Relatively modest — steel ~$1-2 bn/year, aluminium ~$1 bn/year — but the tariffs signal broader market access barriers.
- India's request: BTA should include removal or reduction of Section 232 tariffs on Indian metals.
● Tracked since March 16, 2026 · last seen July 26, 2026 · updates as the daily brief publishes
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