The Trump administration opens new tariff investigations into industrial overcapacity and countries’ efforts to block goods made with forced labor, a move that could lead to higher import duties on dozens of nations.
The cases proceed under Section 301 of the Trade Act of 1974, which allows the U.S. to impose tariffs over trade practices it considers unfair. WSJ reported that U.S. Trade Representative Jamieson Greer expects the administration to complete the probes by mid-July, when temporary 10% global tariffs are set to expire.
One investigation targets what the U.S. describes as industrial overcapacity in export-reliant economies that use subsidies to push underpriced goods into global markets. Major U.S. trading partners including China, India, Mexico, Japan, South Korea, Vietnam and the European Union could face higher tariffs.
A second probe, expected later this week, will examine whether countries prohibit the sale or import of goods made with forced labor. The investigation could cover about 60 countries and could result in higher tariffs on nations that do not block those products.
The new Section 301 actions are set to replace temporary tariffs imposed last month after the Supreme Court ruled that many of Trump’s second-term levies were illegal. Greer did not specify the tariff rates, although administration officials previously said they wanted to restore the level of tariff revenue collected before the court decision.
Companies have until mid-April to submit comments in the industrial overcapacity investigation, and public hearings are scheduled for early May.
