US launches 'unfair' trade investigation into 16 countries including India, EU and China

Washington: After the Supreme Court struck down a key part of US President Donald Trump's tariffs policies last month, Washington on Wednesday has launched a new trade investigation under Section 301 into some of its biggest trading partners including India, China.  

What is this investigation for?

The Office of the United States Trade Representative (USTR) on Wednesday announced two separate probes under Section 301 of the Trade Act of 1974. 

One investigation will examine excess industrial capacity among key trading partners, including India, while the other probe will focus on goods allegedly produced using forced labour.

Which all countries are included?

US Trade Representative Jamieson Greer said that "the Section 301 unfair trade practices investigation could lead to new tariffs on countries including China, the European Union, India, Japan, South Korea and Mexico by this summer."

There are many other economies being investigated include, Taiwan, Vietnam, Thailand, Malaysia, Cambodia, Singapore, Indonesia, Bangladesh, Switzerland and Norway.

Canada, which is the second-largest US trading partner, was not named as a target.

What did the official say?

Jamieson Greer said that, "the policy remains the same, the tools may change depending on, you know, the vagaries of courts and other things." 

Greer said the investigation will focus on countries where manufacturing output appears disconnected from real market demand.

"These investigations will focus on economies that we have evidence appear to exhibit structural excess capacity and production in various manufacturing sectors, such as through larger persistent trade surpluses or underutilised or unused capacity,” he said.

What can happen after the probe?

The investigation could allow the US to impose import taxes on goods from any of the countries found to have engaged in unfair trade practices.

US Trade Representative Jamieson Greer said that "hope to conclude the investigations before new temporary tariffs imposed by Trump in late February expire in July."

What is the reason of the investigation?

The trade investigation aims at rebuilding tariff pressure after the US Supreme Court struck down the centerpiece of Donald Trump's tariff programme last month.