The U.S. has launched a 301 "overcapacity" investigation against 16 trade partners, with China and Taiwan listed among them
After the U.S. Supreme Court ruled that President Trump's "reciprocal tariff" policy was unconstitutional, the Trump administration announced on Wednesday, March 11, that it would launch a new trade investigation into the "overcapacity" of 16 major trade partners to reshape tariff pressure, forcing the other side to continue negotiations and fulfill trade agreements, with China and Taiwan also included.
Reuters reported that U.S. Trade Representative Griles said in a press call that this "Section 301" investigation into unfair trade practices could lead to new tariffs on China, the EU, India, Japan, South Korea, and Mexico this summer.
In addition to these countries, other trade partners facing overcapacity investigations include Taiwan, Vietnam, Thailand, Malaysia, Cambodia, Singapore, Indonesia, Bangladesh, Switzerland, and Norway. Canada, the second-largest trade partner of the U.S., was not included in the list of investigation targets.
Griles said, "These investigations will focus on economies where we have evidence of structural overcapacity, which show overcapacity in various manufacturing sectors, such as sustained large trade surpluses or the existence of idle and underutilized capacity."
Griles also announced that he would initiate another investigation on Thursday, March 12, under Section 301 of the 1974 Trade Act, to prohibit the import of goods produced using forced labor, covering more than 60 countries and regions.
Previously, the U.S. had cracked down on imports from China's Xinjiang region, such as solar panels, based on the Uyghur Forced Labor Prevention Act (UFLPA) signed by former President Biden. This investigation may expand such actions to other countries.
After the U.S. Supreme Court ruled on February 20 that President Trump's global tariffs under the International Emergency Economic Powers Act (IEEPA) were unconstitutional, the president turned to impose a 10% tariff for 150 days on relevant products according to the 1974 Trade Act, Section 122.
Griles said he hopes to complete the "Section 301" investigation and draft remedial measures before the new temporary tariffs imposed by Trump expire in July, and has set a tight schedule: public comment period will end on April 15, and public hearings are scheduled around May 5.
Griles called on all parties to abide by the terms of trade agreements and emphasized the determination of Trump's tariff policy, saying, "He will find a way to address unfair trade practices. He will work to reduce the trade deficit and protect American manufacturing. We have many tools to achieve this goal."
Sources: rfi
Original: toutiao.com/article/1859469219436544/
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