The U.S. Court of Appeals for the Federal Circuit has upheld the constitutionality of the Trump administration’s Section 232 tariffs of 25% on most foreign-made steel, but a trade association representing steel buyers vowed to take its legal fight to the U.S. Supreme Court.

“While disappointed, we are not surprised by the appeals court ruling,” American Institute for International Steel President Richard Chriss said. “We have expected all along for this constitutional question, ultimately, to be decided by the nation’s highest court. We intend to seek Supreme Court review promptly, and we are hopeful that the court will act before it adjourns in June.”

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The Trump administration imposed the tariffs on steel and aluminum imports in March 2018 after years of record near-record steel imports. Citing Section 232 of the Trade Expansion Act of 1962, the administration argued tariffs were needed to protect the domestic steel industry for national security reasons, to prevent the United States from becoming entirely dependent on foreign sources of steel.

The AIIS, which bills itself as the only steel trade association to support free trade, filed a lawsuit in the U.S. Court of International Trade, arguing it was an unconstitutional violation of separation of powers in which Congress delegated its authority to the executive branch.

Thomas Gibson, president and CEO of the American Iron and Steel Institute, said foreign steel importers are seeking to undermine the nation’s steel industry.

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“The court of appeals rightly affirmed our strong belief, and the previous decision of the Court of International Trade, that the constitutional challenge to the Section 232 statute is without merit,” Gibson said. “This lawsuit by steel importers is a weak attempt to mask the fact that surging foreign imports have severely impacted the domestic steel industry and threaten our national and economic security. The court affirmed that Congress acted within its constitutional authority when it authorized the president to take action to adjust imports that threaten to impair our national security. We have consistently maintained this fact and are pleased that the court of appeals agreed.”

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With the price of imports raised by the 25% tariffs, steelmakers enjoyed one strong year of profitability and reinvestment, but the sagging automotive market, record imports of appliances, stagnant infrastructure spending, slower economic growth than required to boost demand for steel, along with other factors, led domestic steelmakers to again lay workers off and idle mills across the country over the last several months.