S&P Global Market Intelligence Quotes Devin Sikes on Biden and Sec. 232 Investigations

Akin Gump international trade counsel Devin Sikes has been quoted by S&P Global Market Intelligence for the article “Biden could seek carbon taxes with same strategy Trump used for steel, aluminum,” which looks at the possibility that President-elect Joe Biden could impose carbon taxes on imported goods as a spur to climate action.

The article discusses the Trump administration’s use of Section 232 of the Trade Expansion Act of 1962 to levy tariffs on steel and aluminum imports. It notes that the EU, which, it notes, is expected to impose carbon border taxes next year, could be an ally in an effort to apply Sec. 232 to enforce climate change obligations.

Sikes said, however, “There's more to global trading than just our EU partners. I think they're obviously a very critical ally and a component of a broader coalition, but I do think there are others out there where perhaps those mechanisms aren't quite in place for any number of domestic reasons.”

He discussed an article by Biden transition officials analyzing, as an example of how to achieve policy goals, Trump’s use of Sec. 232, adding, “I'm not saying it's not possible, but [allies are] one thing that the administration would have to consider for the very reason that Section 232 is generally seen as kind of a blunt instrument that addresses imports from across the globe.” He added that Trump’s use of Sec. 232 did show how exceptions can be carved out for allies, however.

He noted that, in order to implement this strategy, the U.S. Commerce Department would have to investigate whether steel and aluminum imports produced using carbon-intensive methods constitute a national security risk. If so, Biden could recommend action. Sikes added that were an investigation initiated, Biden could try the same approach for negotiating agreements with China among other countries.