Trump administration takes steps to impose new tariffs

**Washington, D.C.** – The Trump administration on Wednesday announced new investigations into the trading practices of several U.S. trading partners, a move that could lead to additional tariffs following the Supreme Court’s recent decision to strike down some of President Trump’s previous tariffs.

U.S. Trade Representative Jamieson Greer stated that the U.S. will investigate concerns related to “structural excess capacity,” which refers to manufacturing more goods than a country can reasonably consume. The countries under review include the European Union, Singapore, Switzerland, Norway, Indonesia, Malaysia, Cambodia, Thailand, South Korea, Vietnam, Taiwan, Bangladesh, Mexico, Japan, and India.

President Trump is relying on Section 301 of the Trade Act of 1974, which empowers the Office of the U.S. Trade Representative to unilaterally retaliate against countries if the U.S. determines they have imposed unfair trade barriers. This law requires a preliminary investigation into the trade practices of the targeted country.

Greer explained that violations related to structural excess capacity can suppress domestic wages and maintain long-term market access barriers. “This announcement, which will be published in the Federal Register, is just an initiation,” Greer told reporters during a call ahead of the announcement. “We expect at the end of this process to be able to articulate with even more precision some of the challenges that face the United States because of structural excess capacity among some of our trading partners.”

In addition to these investigations, Greer said the U.S. will soon launch separate Section 301 probes into approximately 60 trading partner countries to ensure they are prohibiting the import of goods made with forced labor. These investigations will be conducted on a country-specific basis.

Greer emphasized that the trade deals the U.S. already has in place with many of these countries remain “independent” of the new investigations.

Following the Supreme Court ruling that President Trump lacks the authority to unilaterally impose tariffs under the International Emergency Economic Powers Act, the president announced a global tariff rate of 10% applicable for up to 150 days. This action relies on a different statute, Section 122, and these tariffs are set to expire at the end of that period unless extended by Congress.

Although Mr. Trump later indicated an intention to increase the tariff rate to 15%, the White House has not officially enacted this increase.

Greer indicated the administration aims to complete the new Section 301 investigations before the temporary tariffs expire in July but cautioned that the timeline for these investigations cannot be predetermined.
https://www.cbsnews.com/news/trump-tariffs-301-investigation-trade/

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