Portman, Ernst bill would split control of national security trade tariffs between DOD, Commerce

Bipartisan legislation introduced by U.S. Sens. Rob Portman (R-OH) and Joni Ernst (R-IA) would require the U.S. Department of Defense (DOD) to take the lead in deciding why new trade tariffs would be needed for national security reasons under federal law, a role currently handled by the U.S. Commerce Department.

S. 3329, introduced on Aug. 1 by Sen. Portman, would amend Section 232 of the 1962 Trade Expansion Act to require the Secretary of Defense to initiate investigations and to provide for congressional disapproval of certain actions, among other purposes, according to the congressional record summary.

“We must hold countries that violate our trade laws accountable, but we must do so in a way that protects American jobs and strengthens the U.S. economy,” said Sen. Portman in an Aug. 1 statement with bill cosponsors Sens. Ernst and Doug Jones (D-AL).

S. 3329 then would permit the Commerce Department to decide a national response, including whether and where to impose tariffs.

In March, President Donald Trump worked through the Commerce Department to utilize Section 232 when he set import tariffs on steel and aluminum. If enacted, S. 3329 would limit such future actions by increasing the role of Congress in the Section 232 process.

Specifically, the bill would expand the process whereby Congress can disapprove of a Section 232 action by passing a joint resolution of disapproval, according to a bill summary provided by Sen. Portman’s office.

Currently, Section 232 contains a disapproval resolution process limited only to the disapproval of actions on oil imports, according to the summary. S. 3329 would expand the use of that disapproval process to all types of products in future Section 232 actions.

“When it comes to national security, we must hold bad actors accountable,” agreed Sen. Ernst. “I support the president’s ability to make trade deals and keep our nation secure, but the Department of Defense must justify the national security basis for new tariffs under Section 232, and we must increase congressional oversight of this process.”

Lawmakers said in their statement that S. 3329 would better align the statute with its original intent “as a powerful trade remedy tool for the president and Congress to respond to genuine threats to national security.”

The senators also noted that S. 3329 addresses concerns that misuse of Section 232 harms American jobs and the economy, which could result in losing its use as a trade remedy tool, either via a World Trade Organization dispute settlement panel or due to other congressional action, according to the statement.

“I have repeatedly expressed concerns about the misuse of the Section 232 statute to impose tariffs on automobiles and auto parts, and its impact on Ohio jobs and the U.S. economy as a whole,” Sen. Portman said. “As a former USTR [United States Trade Representative], I know that misusing our trade tools not only hurts our exports and our manufacturers, but also our consumers, so I urge my colleagues to support this bipartisan legislation.”

S. 3329 has been referred to the U.S. Senate Finance Committee for consideration.

“We cannot resolve perceived trade imbalances by accusing our allies of being a threat to our national security. If a trading partner is suspected of undermining our national security, that claim needs to be thoroughly investigated by those with relevant expertise in the Department of Defense,” said Sen. Jones.

The current process led by the Commerce Department has unfortunately been misused to target important job-creating industries in Alabama, such as auto manufacturing, Sen. Jones added.

S. 3329 would apply only to future deals, a provision that could deter import tariffs on automobiles, according to the lawmakers.