The Office of the United States Trade Representative initiated two consecutive investigations under Section 301 of the Trade Act of 1974 on Wednesday and Thursday of this week. According to local media reports, these investigations are intended to replace US President Donald Trump's recently rescinded blanket tariffs and could ultimately lead to tariffs, import restrictions or other trade remedies.
Probe targets manufacturing excess capacity in 16 countries
According to USTR, the first investigation will focus on structural excess capacity in manufacturing sectors in 16 countries, including China, the European Union, Japan, India, Mexico and Vietnam, and will examine whether government policies that promote overproduction and excess capacity are disrupting international competition and negatively impacting U.S. industry.
“In many [...] sectors, the United States has lost significant domestic manufacturing capacity or has fallen far behind foreign competitors,” the USTR said in a release, including automobiles, machinery, nonferrous metals and steel in these sectors.
Commenting on the investigation, U.S. Trade Representative Jamison Greer said new investigations show the US will no longer allow foreign countries to undermine its industrial base by exporting the consequences of excess production capacity. He said the Trump administration is committed to bringing critical supply chains ashore and creating
