Section 232 of the Trade Expansion Act is a specific provision within a United States (U.S.) federal law, not an Indian concept. It is a critical U.S. trade policy tool designed to safeguard national security by regulating imports. The provision originated with the broader Trade Expansion Act of 1962, which was signed into law by President John F. Kennedy. The Act's initial purpose was to promote trade liberalization and economic growth while ensuring the protection of domestic industries vital for national defense.
The mechanism of Section 232 begins with the Department of Commerce (Commerce) initiating an investigation to determine if a specific article is being imported "in such quantities or under such circumstances as to threaten or impair the national security". If Commerce makes an affirmative determination of a threat, the President is notified and has 90 days to decide on a course of action. The President is granted broad authority to adjust the level of imports, which can include imposing tariffs, quotas, or other trade restrictions. Any decided action must be implemented within 15 days.
This provision connects directly to the executive authority of the U.S. President and the investigative role of the Department of Commerce. While rarely used between 1962 and 2018, its application has changed significantly in recent years. The Trump Administration invoked Section 232 extensively, notably imposing 25% tariffs on steel and 10% on aluminum in March 2018. More recently, in April 2026, the provision was used to impose new tariffs on patented pharmaceuticals and restructure existing tariffs on metals like aluminum, steel, and copper.