Section 201 of the Trade Act of 1974 (19 U.S.C. §§ 2251–2254) is the U.S. statutory implementation of the WTO Agreement on Safeguards. Unlike antidumping or countervailing duty cases, which require a finding of unfair pricing or subsidization, Section 201 provides relief based solely on import volume and injury — a "fair trade" remedy.
The process:
- Petition — A domestic industry, USTR, House Ways and Means, Senate Finance, or the President can request the USITC to investigate.
- Injury determination — USITC investigates whether increased imports are a "substantial cause" of serious injury or threat of serious injury to the domestic industry. The standard is higher than the "material injury" used in AD/CVD cases.
- Remedy recommendation — If injury is found, USITC recommends a remedy (tariff, quota, tariff-rate quota, or adjustment assistance) to the President.
- Presidential action — The President decides whether to impose relief and in what form. The decision is largely discretionary.
Relief is generally limited to four years, extendable to a maximum of eight, and must be progressively liberalized.
Major Section 201 actions include the 2002 steel safeguards (terminated early after WTO challenges), the 2018 safeguard tariffs on solar cells and washing machines (Proclamations 9693 and 9694), and the 2025 extensions of solar relief through 2030.