The Trump administration launched a new trade investigation targeting 16 partners on Wednesday, amid attempts to replace President Donald Trump‘s tariffs under the International Emergency Economic Powers Act (IEEPA), ruled illegal by the Supreme Court.
The economies under scrutiny, apart from China, Mexico, and the EU, include Japan, India, Taiwan, Vietnam, South Korea, Singapore, Switzerland, Norway, Indonesia, Malaysia, Cambodia, Bangladesh, and Thailand.
The investigations will be conducted under Section 301(b) of the Trade Act of 1974, as stated by U.S. Trade Representative Jamieson Greer. This law allows the U.S. to impose tariffs on imported goods from nations found to be engaging in unfair trade practices.
Greer stated that the Section 301 probes will examine “acts, policies, and practices of certain economies concerning structural excess capacity and production in manufacturing sectors.” He expects the investigation to assess whether the practices hinder or restrict U.S. commerce.
Greer also said that after completing the investigation, they will present their findings and may propose responsive measures, including tariffs, service fees, or other actions.
Trump Tariffs Spark State Lawsuits, Shortfall
This move by the Trump administration follows Treasury Secretary Scott Bessent’s announcement about a rise in global tariffs to 15% earlier this month. He also signaled a “strong relief” that the tariff rates would be back to their old rate within five months
Meanwhile, 24 Democratic states initiated a lawsuit against the administration, contesting the legitimacy of the new 10% tariff under Section 122 of the Trade Act of 1974.
According to a report by the Committee for a Responsible Federal Budget, Trump’s new tariff, an attempt to replace the previous levies struck down by the Supreme Court, is estimated to generate only a fraction of the lost revenue, leaving a potential $1.7 trillion shortfall over the next decade.
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by a Benzinga editor
Photo courtesy: Phil Mistry on Shutterstock.com
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