The Trump administration has broadened its trade probes to encompass 60 nations, including Canada, with the aim of reinforcing the tariff strategies of the U.S. president.
“We are striving for swift progress,” stated U.S. Trade Representative Jamieson Greer in an interview with CNBC on Friday. “Our goal is to expedite the process within a few months.”
In an announcement made on Wednesday, Greer’s office disclosed the initiation of investigations against the European Union and a select group of other countries under Section 301 of the Trade Act of 1974.
A news release issued on Thursday evening by the office expanded the roster of countries under scrutiny. It specified that the department will examine whether the designated countries have policies or practices that are deemed “unreasonable or discriminatory and pose a burden or restriction on U.S. commerce.”
Following a recent ruling by the U.S. Supreme Court that invalidated President Donald Trump’s favored tariff mechanism, utilized for imposing tariffs on Canada, Mexico, and China in relation to “Liberation Day” tariffs and fentanyl-related duties, Trump introduced a 10 percent global tariff using Section 122 of the 1974 Trade Act. These tariffs do not apply to goods compliant with the Canada-U.S.-Mexico Agreement (CUSMA) on trade.
The Section 122 tariffs have the potential to increase up to 15 percent and are set to expire after 150 days unless Congress opts to extend them, a scenario unlikely to receive congressional approval.
Canada is facing additional pressure from Trump’s distinct Section 232 tariffs targeting specific sectors such as steel, aluminum, automobiles, and cabinetry.
Trump aims to impose lengthier tariffs through Section 301 investigations, but the process mandates public consultations and the submission of reports.
Greer emphasized that in case unfair trading practices, such as subsidies, overcapacity, or forced labor, are uncovered in the investigations, steps will be taken to address the harm inflicted on U.S. commerce and resolve the issues with the concerned countries. If the issues persist unresolved, the Trump administration will impose tariffs.
The scope of the 301 investigation concerning Canada remains unclear, with enduring tensions in the Canada-U.S. trade relationship, particularly regarding Canada’s dairy supply management system, a frequent target of Trump’s grievances.
The launch of the 301 investigations coincides with the impending mandatory review of CUSMA by Canada, Mexico, and the U.S.
Amid uncertainties raised by Trump regarding the relevance of the trade pact negotiated during his first term, the U.S. has initiated talks on the CUSMA review with Mexico, a country also under a 301 investigation. Notably, Ottawa and Washington have not signaled a similar move yet.
Despite Greer’s assertions of barriers hindering negotiations with Canada, including provincial restrictions on U.S. alcohol sales, a meeting took place in Washington last week between Greer and Canada’s new trade team, comprising Chief Trade Negotiator Janice Charette, newly appointed Ambassador to the U.S. Mark Wiseman, and Canada-U.S. Trade Minister Dominic LeBlanc.