Two Minutes in Trade - Action on Three Section 232 Probes Still Very Much in the Cards

Importers should be aware that while the deadlines for the administration to take action in three Section 232 investigations have already passed, action in these proceedings is still very much in the cards.

First, there is the Section 232 proceeding on robotics and industrial machinery with a deadline of August 28th for the President to have taken action.

To recap, this investigation includes robots and programmable computer-controlled mechanical systems.

This equipment spans CNC machining centers, turning and milling machines, grinding and deburring equipment, and industrial stamping and pressing machines.

It also includes automatic tool changers, jigs and fixtures, and machine tools for cutting, welding, and handling workpieces.

Application-specific specialty metalwork and equipment used to treat, form, or cut metals such as autoclaves and industrial ovens, metal finishing and treatment equipment, EDM machinery, and laser water cutting tools and machinery is also included.

We also have another Section 232 on personal protective equipment, medical consumables, and medical equipment, where action was also due by August 28th.

This proceeding covers PPE used in healthcare settings, including surgical masks, N95 respirators, gloves, gowns, and related medical parts and components.

Medical consumables are defined as single-use or short-term use items used for patient diagnosis, treatment, and prevention of conditions, including medical and surgical instruments such as syringes, needles, IV pumps, forceps, and scalpels; medical and surgical supplies such as IV bags, catheters, anesthesia equipment, et cetera; and related medical parts and components.

It also covers medical equipment, which is defined as durable equipment, tools, and machines used in healthcare to support patient care, including carriages and wheelchairs, crutches, and hospital beds.

And it additionally covers medical devices defined as an instrument, apparatus, or machine used in the diagnosis, monitoring, or treatment of medical conditions, including pacemakers, insulin pumps, coronary stents, hearing aids, et cetera, as well as electrosurgical apparatus and certain other items.

Additionally, a separate Section 232 proceeding involving wind turbines faced a deadline for action of August 23rd, which has also long passed.

The big caveat here, as my esteemed colleague Nicole Bivens Rouston duly noted in a recent episode of TMIT, is that ambiguous drafting in recent trade legislation means that a missed deadline does not necessarily mean that the government has lost its ability to act.

A missed deadline may instead exacerbate a climate of uncertainty as traders remain unsure of whether the administration will act and will have little or most likely no information regarding the timing of any such action.

This uncertainty alone may disrupt supply chains, purchasing decisions, pricing, and planning.