A Safeguard Investigation is a trade-remedy proceeding designed to provide temporary import relief when increased imports cause or threaten serious injury to a domestic industry — without any allegation of unfair trade practice. The WTO Agreement on Safeguards and GATT Article XIX provide the international framework; the U.S. implementation is Section 201 of the Trade Act of 1974.
There are two main types of safeguard:
- Global safeguards — Apply broadly to imports from all sources, with limited exceptions for developing countries below de minimis thresholds and FTA partners depending on the specific agreement
- Bilateral safeguards — Provided for under specific free trade agreements (such as USMCA), authorizing temporary tariff relief on imports from the FTA partner only when the FTA-related tariff reductions are causing or threatening serious injury
The USITC conducts the injury investigation under Section 201:
- Injury phase — USITC investigates whether increased imports are a "substantial cause" of serious injury or threat. The serious-injury standard is more demanding than the material injury test used in AD/CVD cases.
- Remedy recommendation — If injury is found, USITC recommends a remedy: tariff, tariff-rate quota, quantitative restriction, or adjustment assistance.
- Presidential decision — The President has broad discretion to accept, modify, or reject the recommendation.
Safeguard duration is generally capped at four years, extendable to eight, and must be progressively liberalized. Notable recent U.S. safeguards include the 2018 actions on solar cells (Proclamation 9693) and washing machines (Proclamation 9694) — both extended in part through 2030.