The Trump administration has broadened its trade inquiries to encompass 60 nations, including Canada, as part of an effort to support the tariff strategies of the U.S. president.
“We are aiming to expedite the process,” stated U.S. Trade Representative Jamieson Greer in an interview with CNBC on Friday. “Our goal is to complete the investigations within a few months.”
The office headed by Greer disclosed on Wednesday the initiation of investigations into the European Union and a select group of other countries under Section 301 of the Trade Act of 1974.
In a news release issued on Thursday evening, the list of countries under scrutiny was expanded by the department. The statement indicated that the department will scrutinize whether the countries identified have policies or practices that are deemed “unreasonable or discriminatory and impede or restrict U.S. trade.”
Following a ruling last month by the U.S. Supreme Court invalidating President Donald Trump’s favored tariff mechanism, used for the imposition of “Liberation Day” tariffs and fentanyl-related duties on Canada, Mexico, and China, Trump introduced a global tariff of 10 percent utilizing Section 122 of the 1974 Trade Act. These tariffs do not apply to products compliant with the Canada-U.S.-Mexico Agreement (CUSMA) on trade.
Under Section 122, tariffs can only escalate to 15 percent and will expire after 150 days unless extended by a vote from Congress. The likelihood of Congress approving an extension is low.
Canada is also feeling the impact of Trump’s separate Section 232 tariffs targeting specific industries such as steel, aluminum, automobiles, and cabinetry.
While Trump aims to implement longer-lasting tariffs through Section 301 investigations, the process necessitates public consultations and reports.
Greer mentioned that if unfair trading practices such as subsidies, excess capacity, or forced labor are discovered in any country, the harm to U.S. commerce can be quantified, and efforts to address the issue with that country can be pursued.
If the issue remains unresolved, Greer stated that the Trump administration will impose tariffs.
The scope of the 301 investigation into Canada remains unclear, with enduring tensions in the Canada-U.S. trade relationship, notably Trump’s repeated grievances about Canada’s dairy supply management system.
The launch of the 301 investigations coincides with the preparations of Canada, Mexico, and the U.S. for a mandatory review of CUSMA.
Trump has expressed skepticism about his commitment to the trade deal negotiated during his initial term, labeling it as “irrelevant” and implying it may have fulfilled its purpose.
Official negotiations on the CUSMA review have been initiated by the U.S. with Mexico, which is also under a 301 investigation, while Ottawa and Washington have not made a similar announcement.
Although Greer has frequently cited barriers in Canada that hinder negotiations, such as provincial restrictions on U.S. alcohol sales, a meeting took place in Washington last week between Greer and Canada’s new trade team, including Janice Charette, Canada’s chief trade negotiator, newly appointed Ambassador to the U.S. Mark Wiseman, and Canada-U.S. Trade Minister Dominic LeBlanc.