The Trump administration initiates trade probes into industrial capacity and forced labor, seeking to regain tariff leverage after Supreme Court rulings.
The Trump administration has opened two trade investigations into excess industrial capacity and forced labor across major partners, aiming to restore tariff leverage after the Supreme Court struck down much of its programme, reports Reuters.
US Trade Representative Jamieson Greer stated that probes under Section 301 of the Trade Act will target 16 economies, including China, the European Union, India, Japan, South Korea, and Mexico. Other countries listed include Taiwan, Vietnam, Thailand, Malaysia, Cambodia, Singapore, Indonesia, Bangladesh, Switzerland, and Norway. Notably, Canada was not included.
China rejected the US claims of overcapacity as 'false' and accused Washington of political manipulation. The EU expressed its desire to adhere to a deal signed last July that set a 15 percent levy, but lawmakers warned of uncertainty regarding future tariff levels.
Mr. Greer indicated that the investigations will examine structural excess capacity and persistent trade surpluses, citing China's automotive and electric vehicle sectors. He noted BYD's expansion abroad despite underused plants in Europe. The USTR also pointed to significant German and Irish surpluses and similar imbalances with Singapore, Norway, and Switzerland.
A separate Section 301 probe will cover imports produced with forced labor from more than 60 countries. The US has already restricted goods from China's Xinjiang region under the Uyghur Forced Labor Prevention Act. Beijing denies allegations of abuse.
Mr. Greer mentioned that remedies could be concluded before the temporary tariffs imposed in February expire in July. Public comments on the excess-capacity probe are open until April 15, with a hearing scheduled around May 5. Trump has imposed a 10 percent tariff for 150 days under Section 122 of the Trade Act.
US Treasury Secretary Scott Bessent is due to meet Chinese officials in Paris this week ahead of Trump's planned talks with President Xi Jinping in Beijing.
