Section 232

A trade statute letting the President impose tariffs on imports deemed a threat to national security.

Also known as: Section 232 of the Trade Expansion Act, National Security Tariffs

What it is

Section 232 of the Trade Expansion Act of 1962 authorizes tariffs or quotas on imports found to threaten national security after a Commerce Department investigation. It is the legal basis used for metals and other strategic-goods tariffs. The President decides remedies.

What it does

A Section 232 investigation is an early signal that tariffs may hit a specific product category, giving investors lead time to position in domestic producers. The final proclamation sets rates and exemptions. It concentrates impact on national-security-linked goods like metals.

The evidence

Section 232 metals tariffs boosted domestic steel and aluminum producers while raising costs for downstream users.

Best for

Domestic metals producers like NUE, STLD, X, AA, CENX.

Pairs well with

tariff, section-301, buy-american

Use cautiously with

Country and product exemptions can gut the impact; assuming a blanket tariff ignores the carve-outs that follow.

Cautions

Investigations can run months before any tariff, so timing the trade is difficult.