Background

A Section 232 investigation that could have resulted in higher tariffs on imports of mobile cranes has been terminated, according to an announcement from the Department of Commerce.

The DOC initiated this investigation in May 2020 to determine whether U.S. national security was being harmed by imports of mobile cranes, which the Department of Homeland Security identified as a critical industry because of their extensive use in national defense applications and critical infrastructure. A domestic producer requested the investigation, alleging that imports of low-priced mobile cranes and intellectual property infringement by foreign competitors had resulted in the closure of one of its two U.S. production facilities and eliminated hundreds of skilled manufacturing jobs.

However, the DOC states that the producer has now withdrawn its request “citing a changing economic environment due to the effects of the COVID-19 pandemic.”

If the investigation had been concluded and the DOC had found that that excessive imports of mobile cranes were a threat to U.S. national security, the president could have adjusted imports, including through the use of tariffs and quotas.

For more information on section 232 investigations and how they may affect your business, please contact Kristen Smith at (202) 730-4965.

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