The Trump Administration has launched a series of trade investigations targeting China, Mexico, the European Union, and several other economies. The move comes after the Supreme Court struck down President Trump’s reciprocal tariffs, prompting the administration to seek new approaches to addressing perceived trade imbalances.
U.S. Trade Representative Jamieson Greer announced that the inquiries will proceed under Section 301 of the Trade Act of 1974. This provision grants the USTR authority to investigate and respond to foreign policies considered unfair or in violation of trade commitments, potentially resulting in retaliatory actions such as imposing tariffs or restrictions.
In addition to China, Mexico, and the EU, countries under review include Bangladesh, Cambodia, India, Indonesia, Japan, Malaysia, Norway, Singapore, South Korea, Switzerland, Taiwan, Thailand, and Vietnam.
Section 301 is a primary mechanism utilized by the U.S. to address alleged unfair trading practices. The new push to utilize Section 301 follows President Trump’s executive order in late February that established a 10% “global tariff” via Section 122 of the Trade Act. This followed the Supreme Court’s recent 6-3 decision invalidating Trump’s earlier reciprocal tariffs as illegal.
