Fact Sheet: President Donald J. Trump Restores Section 232 Tariffs
February 11, 2025
Action Summary
- Restoration of Tariffs: Reinstates a full 25% tariff on steel and increases the tariff on aluminum to 25% by closing loopholes and eliminating exemptions.
- Exemption Removal: Terminates all prior exemptions granted to countries such as Argentina, Australia, Brazil, Canada, Japan, Mexico, South Korea, the European Union, Ukraine, and the United Kingdom to prevent tariff evasion.
- National Security and Trade Reform: Utilizes authority under Section 232 of the Trade Expansion Act of 1962 to counter unfair trade practices, global dumping, and excess foreign capacity undermining U.S. national security.
- Industry Revitalization: Aims to revitalize the domestic steel and aluminum industries by achieving sustainable capacity utilization of at least 80%, supporting job creation and local economies.
- Economic Impact: Tariffs have previously led to reduced imports, reshoring of production, significant domestic investments (over $10 billion), and were shown effective without causing lasting inflationary pressures.
- Strategic Manufacturing Benefits: Strengthens America’s manufacturing base to ensure reliable supply for national defense and critical infrastructure during emergencies.
Risks & Considerations
- The reinstatement of Section 232 tariffs on steel and aluminum could lead to increased costs for industries reliant on these materials, potentially affecting research and development projects at Vanderbilt University that utilize steel and aluminum in their infrastructure or equipment.
- There is a risk of retaliatory tariffs from other countries, which could impact international collaborations and partnerships that Vanderbilt University maintains, particularly those involving research and academic exchanges.
- The focus on strengthening domestic manufacturing may lead to shifts in federal funding priorities, potentially affecting grants and financial support available for research in areas not directly related to manufacturing or national security.
- Vanderbilt University may need to consider the implications of these tariffs on its supply chain, particularly for construction projects or laboratory equipment that may become more expensive due to increased material costs.
Impacted Programs
- Vanderbilt’s School of Engineering may experience changes in material costs for projects and research, necessitating adjustments in budgeting and resource allocation.
- The Office of International Affairs might need to navigate potential challenges in maintaining international partnerships and collaborations due to geopolitical tensions arising from tariff policies.
- Vanderbilt’s Economic Research Department could see increased demand for analysis and expertise on the economic impacts of tariffs and trade policies, presenting opportunities for research and policy advisory roles.
- The Construction and Facilities Department may need to reassess project timelines and budgets in light of potential increases in material costs due to tariffs.
Financial Impact
- The increased tariffs on steel and aluminum could lead to higher costs for infrastructure projects at Vanderbilt University, impacting financial planning and resource allocation.
- Potential shifts in federal funding priorities towards manufacturing and national security could affect the availability of grants and financial support for research in other areas, necessitating strategic adjustments in grant applications and funding strategies.
- Vanderbilt University may need to explore alternative suppliers or materials to mitigate the financial impact of increased tariffs on steel and aluminum.
- There could be opportunities for Vanderbilt to engage in research and development projects focused on alternative materials or manufacturing processes, potentially attracting new funding and partnerships.
Relevance Score: 3 (The tariffs present moderate risks involving compliance and potential financial impacts on university operations and research projects.)
Key Actions
- Vanderbilt’s Economic Research Department should conduct a detailed analysis of the impact of reinstated tariffs on steel and aluminum on the local and national economy. This research can provide insights into potential changes in the manufacturing sector and inform strategic decisions regarding investments and partnerships.
- The Office of Federal Relations should engage with policymakers to understand the implications of the new trade policies on higher education and research funding. By staying informed, Vanderbilt can better navigate potential changes in federal support and align its strategic priorities accordingly.
- Vanderbilt’s Engineering School should explore opportunities for collaboration with the domestic steel and aluminum industries, particularly in research and development of new materials and technologies. This could enhance the university’s role in supporting national manufacturing capabilities and innovation.
- The Business School should offer courses and workshops on the effects of trade policies and tariffs, equipping students with the knowledge to understand and respond to changes in the global trade environment. This will prepare graduates to effectively manage and lead in industries affected by these policies.
Opportunities
- The executive order presents an opportunity for Vanderbilt’s Law School to expand its curriculum on international trade law and policy. By offering specialized courses and seminars, the law school can attract students interested in careers in trade law and policy advocacy.
- Vanderbilt can capitalize on the increased focus on domestic manufacturing by developing partnerships with U.S. steel and aluminum producers. This could include joint research initiatives, internships, and collaborative projects that enhance the university’s reputation and impact in the industrial sector.
- The emphasis on strengthening America’s manufacturing industry aligns with Vanderbilt’s commitment to innovation and economic development. The university can leverage its expertise in engineering and technology to support the development of advanced manufacturing techniques and sustainable practices.
- By engaging with industry leaders and policymakers, Vanderbilt can position itself as a thought leader in the national conversation on trade and manufacturing policy. Hosting conferences, workshops, and public forums on the implications of these policies can further establish Vanderbilt as a hub for innovative economic thought and practice.
Relevance Score: 4 (The order presents the potential for major process changes required for Vanderbilt’s programs due to impacts on research, partnerships, and curriculum development.)
Timeline for Implementation
N/A – The directive does not provide any explicit deadlines or enforcement timelines for implementation.
Relevance Score: 1
Impacted Government Organizations
- U.S. International Trade Commission (USITC): The fact sheet cites a 2023 report by the USITC analyzing the impacts of Section 232 tariffs, underlining its role in assessing trade policy effects on U.S. imports.
Relevance Score: 1 (Only one explicitly mentioned agency is impacted by the actions described in the text.)
Responsible Officials
- N/A – The text does not designate any specific officials or agencies responsible for implementing the tariff directives, as it is an executive proclamation directly issued by the President.
Relevance Score: 1 (No designated officials for implementation, indicating minimal direct administrative impact.)