Washington, D.C. (Oct. 18, 2018) – Cause of Action Institute (CoA Institute), a government watchdog organization, today filed a lawsuit against the U.S. Department of Commerce for failing to turn over public documents related to trade tariffs and tariff exemptions. CoA Institute first launched the investigation into the tariff exemption process after it was reported that some of the largest steel and aluminum manufacturers in the country had successfully blocked every tariff exemption filed by smaller U.S manufacturing companies.
John Vecchione, president and CEO of CoA Institute, issued the following statement:
“Tariffs manipulate the free market by creating government-controlled barriers that harm hardworking Americans and putting the economic health of our country at risk. We now have a system where the Executive Branch has the power to pick winners and losers. Our investigation seeks to uncover the process by which tariff exemptions are approved and denied, ensure the tariff-exemption exclusion process is free of political and corporate influence, and seek to uncover any communication between government officials and the companies successfully blocking tariff exemptions.”
Background and timeline:
- In March 2018, President Trump imposed a 10-percent tariff on aluminum and a 25-percent tariff on steel imports
- Trade laws allow exemptions from tariffs in the interest of national security and a recognition that some products are not readily available from U.S manufacturers
- The Commerce Department allows any company (namely, U.S. steel and aluminum companies) to file an objection to a tariff-exemption request
- The New York Times reported that every objection filed by three of the nation’s largest steel producers was successful in blocking the exemption request
- In August 2018, CoA Institute began investigating the exemption process, filing three FOIA requests (see below)
- By law, the government must respond to all FOIA requests within 20 business days
- To date, the Commerce Department has failed to respond to any of the FOIA requests relating to the tariff exemption process
Attachments:
- Complaint – Cause of Action Institute v. U.S. Department of Commerce, No. 18-2397. Tariff Exemptions
- FOIA #1 – Request for work calendars of staff and leadership at the U.S. Department of Commerce that may create or influence tariff and tariff exemption policy
- FOIA #2 – Employee records relating to tariff exemption process, guidance and employees involved in the decision-making process
- FOIA #3 – Any and all communication between staff and leadership at the U.S. Department of Commerce and companies benefiting from tariffs and those filing tariff exemptions
See also:
- The Hill: Tariff-exemption process raises serious cronyism concerns, by John Vecchione. Sept. 23, 2018.
About Cause of Action Institute
Cause of Action Institute is a 501(c)(3) non-profit working to enhance individual and economic liberty by limiting the power of the administrative state to make decisions that are contrary to freedom and prosperity by advocating for a transparent and accountable government.
Media Contact:
Matt Frendewey
matt.frendewey@causeofaction.org
202-699-2018
