The Trump administration has broadened its trade probes to encompass 60 nations, including Canada, in a bid to reinforce the tariff strategies of the U.S. president.
“We are aiming for swift action,” noted U.S. Trade Representative Jamieson Greer in an interview with CNBC on Friday. “Our objective is to expedite the process within a few months.”
On Wednesday, Greer’s office declared the initiation of investigations into the European Union and several other countries under Section 301 of the Trade Act of 1974.
On Thursday evening, an official statement from the office expanded the roster of countries under scrutiny. The statement indicated that the department will scrutinize whether the identified countries have policies or practices that are deemed “unreasonable or discriminatory and impede or limit U.S. commerce.”
Recently, the U.S. Supreme Court invalidated President Donald Trump’s preferred tariff mechanism, which he utilized for imposing tariffs on “Liberation Day” and fentanyl-related duties targeting Canada, Mexico, and China.
In response to the ruling, Trump enforced a 10 percent global tariff using Section 122 of the 1974 Trade Act. These tariffs do not apply to goods compliant with the Canada-U.S.-Mexico Agreement (CUSMA) on trade.
The Section 122 tariffs can only rise to 15 percent and will expire after 150 days unless Congress decides to prolong them, a scenario unlikely to garner congressional approval.
Canada is also grappling with Trump’s distinct Section 232 tariffs on specific sectors such as steel, aluminum, automobiles, and cabinetry.
Trump aims to institute longer-term tariffs through Section 301 investigations, a process that necessitates public consultations and reports.
Greer emphasized that if unfair trading practices such as subsidies, excess capacity, or forced labor are detected in any country, the harm to U.S. commerce can be assessed, and attempts made to address the issue with that country.
Should a country fail to resolve the issue, Greer warned that the Trump administration would impose tariffs.
The 301 investigation of Canada’s trade practices remains undisclosed, although enduring challenges persist in the Canada-U.S. trade relationship, notably Trump’s recurrent objections to Canada’s dairy supply management system.
The launch of the 301 investigations coincides with CUSMA’s mandatory review involving Canada, Mexico, and the U.S.
While Trump has cast doubts on the relevance of CUSMA, negotiations for the pact’s review have officially begun between the U.S. and Mexico, both subjects of the 301 investigations. However, Ottawa and Washington have not announced similar actions.
Despite Greer’s assertions regarding barriers to negotiations with Canada, citing provincial restrictions on U.S. alcohol sales, he recently met with Canada’s new trade team in Washington.
The meeting involved Canada’s chief trade negotiator Janice Charette, newly appointed Ambassador to the U.S. Mark Wiseman, and Canada-U.S. Trade Minister Dominic LeBlanc.
