Trump Administration Reimposes Section 232 Tariffs

On 25 September, two notices appeared in the US Federal Register detailing the Trump administration's initiation of Section 232 investigations into imported robots and industrial machinery, as well as imported medical devices.

The notices stated that the U.S. Department of Commerce commenced the investigations under Section 232 of the Trade Expansion Act, effective September 2. This legislation grants the U.S. President the authority to impose tariffs on imports deemed critical to national security. The Commerce Department is required to submit its policy recommendations to the White House within 270 days.

This move expands the range of industries potentially facing U.S. tariffs. Experts suggest the administration's objective is to bolster domestic manufacturing in key sectors by increasing the cost of imported goods.

According to incomplete statistics, the U.S. government has now initiated Section 232 investigations into 11 categories of goods. The Trump administration has previously used this authority to impose tariffs on automobiles, copper, steel, and aluminum products.

Investigation into Robots and Industrial Machinery

The Secretary of Commerce initiated this investigation to assess the national security impact of imports of robots and industrial machinery, including components.

The scope of the investigation includes, but is not limited to, robots, programmable mechanical systems, CNC machining centres, lathes, milling machines, grinding equipment, industrial presses, and associated tooling. It also covers specialized metal processing equipment such as industrial ovens, electrical discharge machining apparatus, and laser cutting tools. Unmanned aerial systems are excluded, as they are subject to a separate investigation.

The Commerce Department invited interested parties to submit written comments within 21 days of the notice's publication. Key areas of inquiry include current and projected U.S. demand for these products, the capacity of domestic production to meet that demand, the role of foreign supply chains, and the concentration of imports.

The Department also seeks to understand the feasibility of increasing domestic production capacity, the impact of current trade policies, whether tariffs or quotas are necessary for national security, and the effects of automation on U.S. manufacturing employment.

Investigation into Medical Supplies and Equipment

A separate investigation reflects administration concerns over U.S. reliance on foreign supplies for medical items. It targets imports of personal protective equipment (PPE), medical consumables, and medical devices.

PPE includes items such as surgical masks, N95 respirators, gloves, and protective clothing. Medical consumables refer to single-use items like syringes, needles, infusion bags, catheters, gauze, and sutures. Medical devices encompass a broad range of equipment, including pacemakers, coronary stents, ventilators, and MRI scanners.

The investigation explicitly excludes prescription drugs and biological products, which are covered by a separate probe.

The Commerce Department aims to gather information on U.S. demand for these medical products, the sufficiency of domestic production, and the feasibility of expanding U.S. manufacturing capacity.

Expert Skepticism on Policy Effectiveness

Regarding the potential of tariffs to repatriate manufacturing, Ryan Hass, director of the John L. Thornton China Center at the Brookings Institution, expressed skepticism. He stated that such strategies are unlikely to succeed, noting a lack of willingness in the U.S. to undertake simple manufacturing work. "Even if such positions existed, native-born Americans would be unwilling to take them, as they perceive these jobs to offer no prospects for advancement," Hass remarked.