After the Supreme Court dealt a major blow to US President Donald Trump by striking on his strong tariff tool, the administration has launched fresh investigations into what it calls “unfair trade policies” by 16 key trading partners, including major economies like India, China and Japan.The move comes just a month after Trump revised his trade approach with India after long-discussed interim trade agreement between New Delhi and Washington. The new investigations by US on 16 partners, appear aimed at restoring tariff pressure after the Supreme Court’s setback.The administration alleges the countries use policies that disadvantage American producers, with almost all of them running significant goods trade surpluses with the United States.However, Canada, US’ largest trading partner has no mention in the list of 16.
Section 301 probe may lead to new tariffs
The investigations are being conducted under “Section 301” of the Trade Act of 1974. The law allows the US trade representative to impose tariffs or other penalties on countries found to be using unfair trade practices.US Trade Representative Jameison Greer said on Wednesday that the Section 301 “unfair trade practices” investigation could result in new tariffs on countries including China, the European Union, India, Japan, South Korea and Mexico by the summer.
US trade official Greer said the administration was not “pre-judging the investigations” into alleged unfair trade practices.However, he made it clear that the government takes the issues seriously. “If we need to impose tariffs to help solve this we will,” Greer said.He added that there should be little surprise over the investigations, noting that “there is not a lot of controversy that these issues need to be addressed,” even among countries that have signed trade agreements with the United States.The probe could allow the United States to impose import taxes on goods from any of the countries found to have engaged in unfair trade practices.Greer said he hopes to complete the investigations before temporary tariffs introduced by Trump in late February expire in July.“The United States will no longer sacrifice its industrial base to other countries that may be exporting their problems with excess capacity and production to us,” Greer said in the announcement.
More countries under scrutiny
Other countries being investigated include Vietnam, Thailand, Malaysia, Cambodia, Singapore, Indonesia, Bangladesh, Switzerland and Norway.Canada, the United States’ second-largest trading partner, was not listed among the countries being investigated.The action comes weeks after the Supreme Court ruled that tariffs imposed by Trump on several countries in April last year were unlawful.Following the ruling, Trump announced a new 10% global tariff, calling the decision “terrible” and criticising the justices who rejected his trade policy as “fools”.A day later furious Donald Trump revised the levy to 15% worldwide, but when the tariff came into effect the rate remained at 10%. Since then, Trump and senior officials have said the levy may eventually rise to 15%.
Trump administration seeks ‘credible tariff threat’
Officials say the new investigations could help the administration re-establish a “credible tariff threat” to keep trading partners engaged in negotiations. The strategy aims to enforce trade agreements that were originally designed to reduce the higher tariffs imposed earlier under the International Emergency Economic Powers Act.Greer said the measures had long been expected and should not surprise international partners. He urged countries to follow their existing agreements, though he did not guarantee that doing so would protect them from new Section 301 tariffs.Emphasising the administration’s stance, Greer said Trump “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.”
Talks with China expected
The announcement also comes as senior US officials are set to meet their Chinese counterparts in Paris this weekend.Those talks are expected to help lay the groundwork for Trump to meet Chinese President Xi Jinping in Beijing at the end of March.
