Trump launches 'unfair trade' probe targeting India and 15 others
What's the story
The administration of US President Donald Trump has launched a new trade investigation into excess industrial capacity among 16 major trading partners. The move comes after the US Supreme Court struck down Trump's global tariff program last month. The investigation, led by US Trade Representative Jamieson Greer under Section 301 of the Trade Act of 1974, could result in new tariffs on countries like China, European Union (EU), India, Japan, South Korea and Mexico as early as this summer.
Probe details
Countries under scrutiny
Greer said the investigation will focus on economies that appear to exhibit structural excess capacity and production in various manufacturing sectors. This could be through larger persistent trade surpluses or underutilized/unused capacity. The countries under scrutiny also include Taiwan, Vietnam, Thailand, Malaysia, Cambodia, Singapore, Indonesia, Bangladesh and Norway. Notably, Canada—the second-largest US trading partner—has not been named as a target of this probe.
Evidence scrutiny
Investigation will look into evidence
The investigation will look into evidence such as large current account surpluses, government subsidies, suppressed domestic wages, noncommercial activities of state-owned enterprises (SOEs), inadequate environmental and labor standards, subsidized lending and currency practices. This comes after the US Supreme Court ruled on February 20 that Trump's global tariffs imposed under a national emergencies law were illegal.
Tariff imposition
Temporary tariffs imposed by Trump
Following the Supreme Court ruling, Trump imposed a temporary 10% tariff for 150 days under Section 122 of the Trade Act of 1974. Greer hopes to conclude these Section 301 investigations, including proposed remedies, before these temporary tariffs expire in July. The probe will be expedited with public comments accepted until April 15 and a hearing scheduled around May 5.
Forced labor probe
US to ban imports of goods produced with forced labor
Along with this, the administration will also launch another Section 301 investigation on Thursday aimed at banning US imports of goods produced with forced labor. The probe is expected to cover more than 60 countries. This comes after the US tightened restrictions on solar panels and other products from China's Xinjiang region under the Uyghur Forced Labor Protection Act signed by former president Joe Biden.