Administration Opens Section 301 Trade Probes of 16 Economies

The Trump administration opened new Section 301 trade investigations on Wednesday into manufacturing in 16 economies, and U.S. Trade Representative Jamieson Greer said they could eventually lead to new import taxes, according to the Canadian Press. Holland & Knight, summarizing Barron’s reporting, said the probes follow the Supreme Court’s decision invalidating tariffs imposed under the International Emergency Economic Powers Act, as the administration looks for other legal grounds to restore tariffs.

The investigations are expected to examine excess industrial capacity and government backing that could give foreign companies an “unfair advantage” over U.S. companies, the Canadian Press reported. Holland & Knight, citing Barron’s, described the issues as “structural excess capacity and production in manufacturing sectors.” The U.S. Trade Representative’s office, in its Mar. 11 notice, said the investigations will determine whether the practices of the listed economies are unreasonable or discriminatory and burden or restrict U.S. commerce, and Greer said “The United States will no longer sacrifice its industrial base to other countries.”

The Canadian Press listed the economies as China, the European Union, Singapore, Switzerland, Norway, Indonesia, Malaysia, Cambodia, Thailand, South Korea, Vietnam, Taiwan, Bangladesh, Mexico, Japan and India. Canada is not on the list, the Canadian Press reported, and Holland & Knight said neither Canada nor the United Kingdom is covered.

The legal basis matters because the court’s February ruling removed the administration’s main tariff tool. In response, the U.S. began collecting a 10 percent global tariff under Section 122 of the Trade Act of 1974, the Canadian Press reported. Those tariffs expire July 24 after 150 days, and Trump has said he planned to raise the rate to 15 percent but had not yet done so, the outlet said.

Section 301 works differently from the tariffs the court struck down. Professionals quoted by Barron’s, as summarized by Holland & Knight, said the duties will affect sectors differently than the earlier tariffs did, so importers will need new analysis and calculations. Attorney Andrew McAllister cautioned that any carve-outs will probably be narrower than those the first Trump administration granted when it imposed Section 301 tariffs on China, according to the same summary. The Canadian Press reported separately that Section 301 investigations require public consultations and reports before tariffs can be imposed.

Disputes over the earlier tariffs have not ended. The Canadian Press reported that companies are seeking refunds from the government, customers are seeking refunds from shippers, and states are seeking to block additional tariffs.

The trade representative’s office said a public comment docket would open March 17, written comments and requests to appear would be due April 15, and a public hearing would begin May 5. It did not announce tariffs or any specific remedy.