US launches trade probe targeting China, EU, India and others after tariff setback
India Today
The Trump administration launched a Section 301 probe into excess manufacturing capacity in 16 trading partners, a move that could lead to new tariffs after the Supreme Court struck down a key tariff policy.
The Trump administration has launched a new trade investigation targeting excess industrial capacity in 16 major trading partners, a move aimed at rebuilding tariff pressure after the US Supreme Court struck down a key part of President Donald Trump’s tariff programme last month.
According to Reuters, the probe was announced Wednesday by US Trade Representative Jamieson Greer, who said the investigation under Section 301 of the Trade Act of 1974 could lead to new tariffs against countries including China, the European Union, India, Japan, South Korea and Mexico.
Other economies subject to the investigation include Taiwan, Vietnam, Thailand, Malaysia, Cambodia, Singapore, Indonesia, Bangladesh, Switzerland and Norway.
Greer said the probe would focus on countries where manufacturing output appears disconnected from real market demand.
“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 underutilized or unused capacity,” he told reporters during a conference call.
The investigation comes weeks after the US Supreme Court dismantled the centerpiece of Trump’s global tariff programme, forcing the administration to explore alternative legal tools to maintain trade pressure on key partners.
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