The administration of Donald Trump has launched fresh investigations into alleged “unfair trade practices” by 16 major trading partners, including India, China and Bangladesh, a move aimed at restoring tariff pressure after the US Supreme Court struck down the administration’s earlier tariffs as illegal last month.
The probes are being carried out under Section 301 of the Trade Act of 1974, which allows the US Trade Representative to impose tariffs or other retaliatory measures against countries found to be using unfair trade practices.
Possible New Tariffs by Summer
According to US Trade Representative Jamieson Greer, the investigations could lead to new tariffs on several key economies by this summer. The potential targets include China, the European Union, India, Japan, South Korea and Mexico.
Other trading partners included in the excess-capacity investigation are Taiwan, Vietnam, Thailand, Malaysia, Cambodia, Singapore, Indonesia, Bangladesh, Switzerland and Norway. However, Canada, the second-largest US trading partner, was not listed among the targets of the probe.
“So these investigations will focus on economies that we have evidence appears to exhibit structural excess capacity and production in various manufacturing sectors, such as through larger persistent trade surpluses or underutilised or unused capacity,” Greer told reporters on a conference call reportedly.
Forced Labour Import Probe
Greer also said that on Thursday he would launch another investigation under Section 301 of the Trade Act of 1974 aimed at banning imports into the United States of goods produced with forced labour. This probe will cover more than 60 countries.
The US has already taken action against imports from China’s Xinjiang region under the Uyghur Forced Labour Protection Act, which was signed into law by former President Joe Biden. The new investigation could extend similar restrictions to other countries.
Greer said he wanted other nations to enforce bans on goods produced with forced labour similar to those included in a nearly century-old US trade law.
The US has alleged that Chinese authorities have set up labour camps for ethnic Uyghur and other Muslim communities in the western region of Xinjiang. However, Beijing has repeatedly denied these allegations.
Timeline and Trade Pressure
Greer said he hopes to conclude the Section 301 investigations including potential remedies before temporary tariffs introduced by Trump in late February expire in July.
After the US Supreme Court struck down Trump’s global tariffs under a national emergencies law on February 20, the administration imposed a 10 per cent tariff for 150 days under Section 122 of the Trade Act of 1974.
The US Trade Representative has set an accelerated timeline for the excess-capacity probe, with public comments to be accepted until April 15 and a public hearing scheduled for around May 5.
Greer said the investigations would allow the Trump administration to rebuild a credible tariff threat against trading partners and keep them engaged in negotiations while implementing trade deals aimed at reducing higher tariff rates imposed earlier under the International Emergency Economic Powers Act.
He added that the probes had already been signalled by US officials and should not come as a surprise to trading partners, though he did not say whether existing trade agreements would shield them from possible Section 301 tariffs.
“He said that Trump was determined to pursue tariffs and ‘will find a way to deal with unfair trading practices. He’ll find a way to get our trade deficit down. He’ll find a way to protect US manufacturing. We have a lot of tools to do it,’ Greer said as per media reports.
