Trump Administration Opens Investigations Into Trade Practices of Over A Dozen Countries
The Trump administration has launched investigations into the trade practices of more than a dozen major economies, setting the stage for a fresh wave of tariffs after the Supreme Court last month struck down the president's sweeping global duties as unlawful.
US Trade Representative Jamieson Greer announced the investigations on Wednesday, saying that investigations under Section 301 of the Trade Act, which is the same legal authority used to justify tariffs on Chinese goods during Trump's first term, would target multiple countries including:
- China
- The European Union
- India
- Japan
- South Korea
- Mexico
- Taiwan
- Vietnam
- Thailand
- Malaysia
- Cambodia
- Singapore
- Indonesia
- Bangladesh
- Switzerland
- Norway
Canada, the US's second-largest trading partner, was notably absent from the list.
The investigations centre on allegations of excess manufacturing capacity, which is the idea that foreign governments are subsidising production beyond what domestic and global demand requires, then dumping the surplus on American markets. "The United States will no longer sacrifice its industrial base to other countries that may be exporting their problems with excess capacity and production to us," Greer said.
Sectors identified as particular concerns include:
- Aluminium
- Automobiles
- Batteries
- Electronics
- Semiconductors
- solar modules
- Steel
- Robotics
- Ships
The EU was specifically called out over chemicals, machinery and vehicles, with Germany and Ireland being singled out. Taiwan was flagged over semiconductors and electronics. Regarding China, the USTR's filing said its trade surplus was "driven by increasing excess manufacturing capacity and production in numerous sectors," referencing Chinese electric vehicle maker BYD as an example of aggressive overseas expansion.
A second investigation linked to imports made using forced labour is expected to cover around 60 countries and was due to be launched as early as Thursday. Greer indicated that further investigations are also in the pipeline that will potentially cover digital services taxes, pharmaceutical pricing and other issues. "I think there are a handful of these that will come out," he said, without giving a specific number.
The flurry of activity is the administration's direct response to the Supreme Court's ruling last month that Trump had exceeded his authority in using emergency economic powers to impose tariffs on virtually all countries. Trump called the decision "terrible" and called the justices "fools," before quickly announcing a temporary 10% global tariff under different legal authority to last until late July, while officials work on more permanent replacements. He has since said that the rate would rise to 15%, though that increase has yet to take effect.
Section 301 and the related Section 232 authority are considered legally sturdier than the emergency powers that the court rejected, and Greer said he hoped to wrap up the new investigations before the temporary tariffs expire in July, which will allow any resulting tariffs to seamlessly take their place. "The policy remains the same. The tools may change, depending on the vagaries of courts and other things, but the policy remains the same," he told reporters. A public hearing is expected to take place around 5th May, following an open comment period.
The announcement of the investigations has resulted in pushback from several areas. China's foreign ministry spokesman Guo Jiakun said that "trade wars do not serve the interests of any party," calling the overcapacity framing "a false narrative" and accusing the US of using it "as a pretext for political manipulation." South Korea said it would engage closely with Washington to ensure its exporters were not disadvantaged relative to major competitors. Strategists at DBS Bank described the investigations as the administration's "Plan B," saying that while existing Section 301 actions against China are largely suspended until late 2026, the new investigations signal a broadening of trade enforcement across the board.
The timing adds an extra layer of complexity to US relations with Beijing. Senior American and Chinese officials are due to meet in Paris this weekend, with those talks expected to lay the groundwork for a Trump-Xi summit in Beijing later this month. Targeting Mexico also risks further straining already tense negotiations over the renegotiation of the US-Mexico-Canada trade agreement that Trump himself signed during his first term.
Greer was asked how the new probes would interact with tariff deals already struck with partners like the EU and Japan. He said those agreements were "independent" of the investigations, and that the administration would be "able to take into account these agreements" without elaborating on what that would mean in practice.
