In the 1932 case Gulf States Steel Co. et al. v. United States, the Supreme Court ruled in favor of the U.S government regarding a dispute over import duties on iron ore and pig iron from Cuba. The plaintiffs, Gulf States Steel Company and others, argued that under a commercial agreement between the U.S and Cuba signed in 1903, they were entitled to free entry for their imported goods without any duty imposed by Congress' Tariff Act of 1922. However, the court held that while such an agreement did exist between both countries at one point allowing certain Cuban products into America duty-free or at reduced rates; it was superseded by later treaties which gave Congress authority to impose tariffs as per its discretion. Therefore, despite previous agreements with Cuba providing preferential treatment for some imports including iron ore and pig iron; these commodities were not exempted from duties levied under subsequent legislation like Tariff Act of 1922.

The dissenting opinion in the case of Gulf States Steel Co. et al. v. United States disagreed with the majority's interpretation of the Tariff Act and its application to imported goods from foreign countries, specifically those used for manufacturing purposes within U.S borders. The dissent argued that such items should not be subject to import duties as they were not being sold or consumed domestically but rather utilized as raw materials in production processes, contributing significantly to domestic industry and employment growth. They contended that imposing tariffs on these imports would negatively impact American manufacturers by increasing their operational costs, thereby making them less competitive internationally and potentially leading to job losses at home.