Pittsburgh — Sen Elizabeth Warren (D-Mass.) has sent a letter to the Department of Commerce Inspector General, calling for an investigation into the department's implementation of the exemption process for the Section 232 tariffs on steel and aluminum.
"Commerce officials claimed that the exemption process would be objective, and decisions would be made after 'taking into account national security considerations ... [and] whether a product is produced in the United States of a satisfactory quality or in a sufficient and reasonably available amount,'" Warren said in a letter sent to Commerce Inspector General Peggy Gustafson on Wednesday.
"Secretary Ross promised that the Commerce Department would run 'a fair and transparent process.' But an investigation by my staff and additional public reporting have revealed the opposite: the Commerce Department process for making decisions that affect thousands of American companies subject to President Trump's tariffs is failing to protect national security; it is arbitrary and opaque, replete with mistakes, and subject to political favoritism. It is therefore imperative that your office investigate this matter."
Warren noted that as of August 27, Commerce had received 30,035 exemption requests for steel and aluminum imports combined, with the department issuing decisions on those requests. Commerce has approved 2,101 requests and denied 1,458 as of August 27.
In her letter, Warren asked that the review to include an analysis of the process and procedures in place for Commerce officials to make decisions on tariff exemptions; the extent to which Commerce officials are following these policies and procedures; whether Commerce officials are making decisions on a case-by-case basis, in a transparent process, based on consistent application of factual analysis, free of political interference from individuals inside or outside the administration; the steps Commerce officials are taking to ensure that tariffs meet their goal of protecting national security while minimizing undue impact on downstream American industries; and any credible evidence that tariff exemptions granted by Commerce have strengthening the national security on the US.
The effectiveness of Commerce's product exclusion process has been a recurring subject of scrutiny by US lawmakers since the Section 232 tariffs on steel and aluminum began to take effect in March.
Warren sent a letter to Commerce Secretary Wilber Ross August 7 after an investigation by her office found that Rusal America Corp., a subsidiary of a sanctioned Russian company controlled by Oleg Deripaska, a sanctioned Russian oligarch, had received an exemption from the aluminum tariffs. The next day Commerce reversed the decision; however, Warren contends that Commerce still has not explained how a sanctioned Russian company got an exemption in the first place, noting the company received its exemption a day after US President Donald Trump met with Russian President Vladamir Putin in Helsinki.
Warren also pointed to media reports which have raised questions about the potential political interference US steelmakers have had in objecting to exemption requests.
A spokesperson for the Department of Commerce was not immediately available to comment Thursday.
