Trump begins lengthy process of reviving tariffs
The White House is opening a slew of investigations into trading partners’ practices
What happened
The Trump administration on Wednesday said it was opening investigations into alleged unfair trading practices by 16 major U.S. trading partners, including China and the European Union, as President Donald Trump tries to resurrect sweeping global tariffs struck down by the Supreme Court. The investigations, based on Section 301 of the 1974 Trade Act, will look at “excess capacity” in manufacturing, said U.S. Trade Representative Jamieson Greer in an announcement. Other targets of the investigation include Mexico, Japan, South Korea and India.
Who said what
The new investigations give the administration “an avenue to rebuild a credible tariff threat against trading partners to keep them negotiating and implement trade deals” after Trump’s earlier tariffs were thrown out, Reuters said. “The policy remains the same,” Greer told reporters. “The tools may change depending upon the vagaries of courts.”
Section 301 investigations “typically take several months or even years, but Greer said his team would aim to complete the probes by mid-July,” when Trump’s temporary 10% tariffs — under Section 122 of the 1974 law — expire, The Wall Street Journal said. Greer “didn’t specify how high the new tariffs would be, saying he would not prejudge the investigations.” The Section 301 tariffs are “meant to address specific and legitimate unfair trade practices,” Sen. Tim Kaine (D-Va.) said. “They should not be used to drag the United States back into a cost-raising, broad-based tariff regime.”
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What next?
Greer said his office expects to open a second Section 301 investigation today targeting forced labor involving about 60 nations. The Trump administration “is required to carry out an investigation and hold consultations and hearings before it can impose those import taxes,” The New York Times said. But the inquiries “will almost certainly result later this summer in permanent new taxes on U.S. imports,” The Washington Post said.
