Trump Administration Launches New Trade Investigations, Seeking to Rebuild Tariff Structure After Supreme Court Blow
WASHINGTON – The Trump administration Wednesday announced a series of trade investigations targeting China, Mexico, the European Union, and over a dozen other economies, a move intended to circumvent a recent Supreme Court ruling that invalidated the president’s previous tariff strategy. The investigations, authorized under Section 301 of the Trade Act of 1974, will focus on alleged unfair trade practices and “structural excess capacity” in manufacturing sectors, according to U.S. Trade Representative Jamieson Greer.
The Supreme Court, in a 6-3 decision on February 20, determined that Trump lacked the authority to impose tariffs under the International Emergency Economic Powers Act (IEEPA), the legal basis he had previously claimed. In response, Trump signed an executive order enacting a 10% “global tariff” under Section 122 of the Trade Act, but these tariffs are set to expire within 150 days.
Greer emphasized that the president’s trade policy remains consistent: “Protect American jobs and to make sure we have fair trade with our trading partners.” The Section 301 probes will examine manufacturing sectors where key trading partners are believed to have production capacity exceeding market demand, leading to persistent trade surpluses.
Beyond China, Mexico, and the EU, the investigations will also include Japan, India, Taiwan, Vietnam, South Korea, Singapore, Switzerland, Norway, Indonesia, Malaysia, Cambodia, Bangladesh, and Thailand. Greer indicated that further investigations, potentially utilizing different legal tools, are anticipated.
The process will involve receiving written comments, holding a public hearing, and consulting with the targeted economies. If unfair practices are found, the U.S. Trade Representative Office could impose tariffs, fees on services, or other measures.
Treasury Secretary Scott Bessent predicted last week that U.S. tariff rates would likely return to pre-Supreme Court ruling levels within five months, as the Office of the U.S. Trade Representative and the Commerce Department complete related studies. He described the Section 301 authorities as “more slow-moving, but they are more robust,” having withstood over 4,000 legal challenges.
The move comes as global trade faces continued uncertainty following the Supreme Court’s decision, with China poised to benefit from the nullification of Trump’s previous tariffs.