HCMC – The U.S. government has announced a series of new trade investigations targeting China, Mexico, the European Union and more than 10 other economies, including Vietnam, to establish legal grounds for potential tariffs after reciprocal tariffs were ruled unlawful by the Supreme Court of the United States.
According to an announcement by the Office of the U.S. Trade Representative (USTR) on March 11, the investigations will be conducted under Section 301 of the Trade Act of 1974.
U.S. Trade Representative Jamieson Greer said Section 301 allows the U.S. to impose tariffs on imports from economies suspected of engaging in unfair trade practices.
The tariffs under this provision could replace part of the reciprocal tariffs imposed last year by the Trump administration on several trading partners without congressional approval.
In addition to China, Mexico and the EU, the list of economies under investigation includes Japan, India, Taiwan, Vietnam, South Korea, Singapore, Switzerland, Norway, Indonesia, Malaysia, Cambodia, Bangladesh and Thailand.
The investigations will focus on policies and practices that contribute to excess industrial production capacity in certain economies. According to Greer, several major trading partners maintain production capacity far beyond actual domestic and global demand.
This situation has led to persistent and large trade surpluses and an influx of low-priced goods into the U.S. market, putting pressure on domestic manufacturing industries.
The USTR said there is evidence that China’s goods trade surplus has been driven by rising excess production capacity and output in multiple sectors.
Industries affected by China’s excess capacity include aluminum, automobiles, batteries, electronics, machinery, paper, plastics, robots, satellites, semiconductors, ships, solar panels and steel.
Greer noted that the investigation could be expanded to additional economies in the coming period. After receiving public comments and holding hearings, the USTR will issue its findings. If violations are identified, the U.S. may impose countermeasures, including new import tariffs.
On February 20, the Supreme Court of the U.S. ruled that President Trump did not have the authority to impose reciprocal tariffs under the International Emergency Economic Powers Act (IEEPA).
Following the ruling, Trump signed an order imposing a 10% global tariff under Section 122 of the Trade Act of 1974, though the measure can remain in effect for a maximum of 150 days.
U.S. Treasury Secretary Scott Bessent said U.S. tariff levels are expected to return to those before the court ruling by August. He added that in the coming months the USTR and the United States Department of Commerce will complete the studies needed to provide a legal basis for additional tariffs.
