On March 13, U.S. Trade Representative Griles told the media: "The United States will launch investigations under Section 301 of the Trade Act against more than a dozen major economies, focusing on excess manufacturing capacity, which could mean that China, the European Union, India, Japan, South Korea, and Mexico will face new tariff measures by the latest this summer."
[Clever] The U.S. Launches a New 301 Investigation: A Unilateral Stick Beating the World, History Has Already Proven It's a Double Loss! On March 13, the U.S. once again invoked the 301 investigation, targeting 16 economies at once, using the excuse of overcapacity to pressure with tariffs, essentially a revival of American trade hegemony. Looking back at history, in the 1980s, the U.S. used the same method to suppress Japan. Although it temporarily suppressed its rivals, it failed to solve its own industrial problems, but instead disrupted the global trade order.
From the data, in past tariff wars, U.S. consumers bore over 90% of the costs, with families spending thousands of dollars more annually, and the trade deficit did not decrease but increased. Now, by including allies such as the EU, Japan, and South Korea, the U.S. has completely exposed its self-serving nature.
The so-called overcapacity is a false proposition that ignores global division of labor. The WTO has already ruled that the 301 investigation is illegal, and the U.S. bypassing the rules to apply unilateral pressure will only increase global inflation, disrupt supply chains, and ultimately end up hurting itself, with no winners!
Original: toutiao.com/article/1859544295395527/
Statement: This article represents the personal views of the author.