The United States continues a consultation process as part of its analysis to impose tariffs on its imports of electrical transformers and other related goods under Section 232.
Section 232 of the Trade Expansion Act of 1962 allows the President of the United States to adjust imports if the Department of Commerce determines that certain products are imported in quantities or under circumstances that threaten to harm the national security of the United States.
Initially, the Commerce Department launched an investigation on May 11 following inquiries and requests from interested parties in the United States, including several members of Congress, a grain-oriented electric steel (GOES) manufacturer, and producers. of power and distribution transformers.
The product group covered includes stacked core laminations for incorporation into transformers, stacked cores for incorporation into transformers, wound cores for incorporation into transformers, electrical transformers, and transformer regulators.
In total, U.S. imports of those products totaled $ 3.46 billion in 2019, with Mexico as the main supplier, followed by other countries such as Canada, China, Germany and South Korea.
A pending Section 232 investigation into the import of motor vehicles and parts could result in an increase in US tariffs on more than $ 360 billion of imports.
Under Section 232, the United States imposed tariffs on imports of steel and aluminum originating in the European Union, Canada, Mexico, and Brazil, among others.
On August 5, 2018, President Donald Trump announced that the increase in tariffs that his Administration has imposed on imports of steel, aluminum, washing machines, solar panels and a variety of Chinese products will begin to generate sufficient income to reduce the federal debt.
Federal debt represents an accumulation of government loans over time, even as a result of annual budget deficits (that is, when federal government outlays exceed revenues).