US Trade Representative Jamieson Greer said the Section 301 unfair trade practices investigation could lead to new tariffs on countries including China, the European Union, India, Japan, South Korea and Mexico by this summer.
Other economies under scrutiny include Taiwan, Vietnam, Thailand, Malaysia, Cambodia, Singapore, Indonesia, Bangladesh, Switzerland and Norway, while Canada the second-largest US trading partner was not named as a target.
Also Read: Trump says ‘not finished yet’ with strikes on Iran; asks oil companies to use Strait of Hormuz
“So these investigations will focus on economies that we have evidence appear 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 during a conference call.
Focus on excess industrial capacity
Greer said the probe will examine evidence such as large current account surpluses, government subsidies, suppressed domestic wages, noncommercial activities of state-owned enterprises, inadequate environmental and labour standards, subsidised lending and currency practices.The investigation comes after the US Supreme Court ruled on February 20 that Trump’s global tariffs imposed under a national emergencies law were illegal. Following the ruling, Trump imposed a temporary 10% tariff for 150 days under Section 122 of the Trade Act of 1974.
Greer said he hopes to conclude the Section 301 investigations, including proposed remedies, before these temporary tariffs expire in July. The probe will move quickly, with public comments accepted until April 15 and a hearing scheduled around May 5.
Forced labour imports under scrutiny
Greer also said the administration will launch another Section 301 investigation on Thursday aimed at banning US imports of goods produced with forced labour. The probe is expected to cover more than 60 countries.
The US has already 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. The new investigation could expand similar actions to other countries.
Washington has accused Chinese authorities of establishing labour camps for ethnic Uyghurs and other Muslim minorities in Xinjiang, allegations Beijing denies.
Also Read: Trump administration estimates Iran war cost at over $11 billion in six days, source says
The investigations also come as US officials led by Treasury Secretary Scott Bessent prepare to meet Chinese counterparts in Paris this week ahead of a potential meeting between Trump and Chinese President Xi Jinping in Beijing later this month.
During his first term, Trump used a Section 301 probe to justify tariffs of about 25% on many Chinese imports, a legal tool widely seen as more resilient to court challenges.