Even as the United States is busy working alongside Israel on the war against the Islamic terrorist state of Iran, the Trump administration announced that it will launch tariff investigations on several countries including trade partners like Japan, according to a news report by Kyodo News. The probes are meant to find out if unfair trading practices exist.
To put things in perspective, posted below is an excerpt from the Kyodo News report. Some parts in boldface…
U.S. President Donald Trump’s administration said Wednesday it will launch tariff investigations into what it sees as unfair practices by China, Japan and over a dozen other American trading partners.
According to U.S. Trade Representative Jamieson Greer, the move is intended to “uncover a variety of unfair trading practices related to excess capacity in production” in the manufacturing sector, and replace Trump’s sweeping tariff regime that was invalidated by the Supreme Court in February.
“Our view is that key trading partners have developed production capacity that is really untethered from the market incentives of domestic and global demand,” Greer told reporters.
The other trading partners facing the investigations, carried out under Section 301 of the Trade Act of 1974, are the European Union, Bangladesh, Cambodia, India, Indonesia, Malaysia, Mexico, Norway, Singapore, South Korea, Switzerland, Taiwan, Thailand and Vietnam, Greer said.
The statute, which allows the U.S. government to impose tariffs in response to a foreign country’s alleged unfair practices, was a favorite tool of Trump for justifying higher tariffs on Chinese imports when he started a trade war with Beijing during his first term as president.
After the U.S. top court on Feb. 20 struck down a large chunk of Trump’s far-reaching tariff agenda as imposed under the International Emergency Economic Powers Act, his administration introduced a new 10 percent global duty.
However, the new 10 percent surcharge, relying on a different legal framework, can only last 150 days unless Congress approves an extension.
Greer said the Trump administration seeks to complete the investigations as quickly as possible and prepare for new Section 301 tariffs within the 150-day period.
The statute requires consultations with the governments of the targeted trading partners before tariffs can be imposed.
Let me end this piece by asking you readers: What is your reaction to this development? Do you think the United States is doing the right thing with the multiple trade investigations? How do you think the Trump administration will adjust its tariff policy once the 150-day period expires?
You may answer in the comments below. If you prefer to answer privately, you may do so by sending me a direct message online.
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