More than eight years after President Trump dusted off Section 232 of the Trade Expansion Act of 1962 to tax US imports of steel and aluminum, no one should be surprised to hear that the president has stretched the meaning of “national security” in the statute (or lack thereof) to impose tariffs on a widening array of products of dubious national security relevance. Since March 2018, the Trump administration has extended the steel and aluminum duties to cover a vast array of steel and aluminum “derivatives” (i.e., products made using these metals) and imposed additional “national security” tariffs on imports of automobiles and auto parts; copper and copper derivatives; timber, lumber, and their derivatives; medium- and heavy-duty trucks, parts thereof, and buses; semiconductors; and pharmaceuticals. (Additional “national security” tariffs on polysilicon and its derivatives are set to go into effect on December 4.)
Yet, perhaps more concerning than this headline expansion in “national security” protectionism is the administration’s move to extend the Section 232 tariffs to cover products that the average American would struggle to connect to the nation’s defense imperatives. For instance, the administration deems refrigerators, washing machines, and air-conditioning (AC) units to be steel derivatives and kitchen cabinets, sofas, and couches to be timber/lumber derivatives, thus levying a 25 percent tariff on imports of these products. Table 1 lists these and other ridiculous examples of nondefense-related products subject to (or soon to be subject to) Section 232 tariffs. Under the guise of protecting and reinvigorating manufacturing industries whose output includes defense and critical infrastructure–related products, the administration is taxing everyday items, even if the mere suggestion that such products pose a threat to the nation’s safety is ludicrous.
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