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.
TARIFF STRATEGY AFTER COURT SETBACK
The investigation comes weeks after the US Supreme Court dismantled the centerpiece of Trump’s global tariff programmeforcing the administration to explore alternative legal tools to maintain trade pressure on key partners.
Greer said the new probe could lead to tariff remedies by the summer, with the administration seeking to conclude the investigation before temporary tariffs imposed in February expire in July.
Officials said the probe also aims to address concerns that state-supported industries in some countries are flooding global markets with low-cost goods.
SEPARATE FORCED LABOUR INVESTIGATION PLANNED
Greer also announced plans to launch another Section 301 investigation into goods produced using forced labor, covering more than 60 countries.
The move could expand existing restrictions under the Uyghur Forced Labor Protection Act, which already limits imports tied to China’s Xinjiang region.
“President Trump is determined to pursue tariffs and will find a way to deal with unfair trading practices,” Greer said.
“He’ll find a way to get our trade deficit down and protect US manufacturing. We have a lot of tools to do it.”
Public comments for the excess capacity probe will be accepted until April 15, with a hearing expected in early May.
The investigations come as US officials prepare for trade talks with Chinese counterparts in Paris, ahead of a possible meeting between Trump and Chinese President Xi Jinping later this month.
– Ends
With inputs from Reuters
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