Jamieson Greer of the Office of the United States Trade Representative (USTR) said on the 20th local time that he will conduct investigations based on Section 301 of the Trade Act targeting most major trading partners. Enacted in 1974, Section 301 of the U.S. Trade Act gives the authority to impose a tariff in response to unfair, unreasonable, and discriminatory actions by foreign governments. Korea is expected to be among those surveyed.
According to Reuters, Greer said that a range of issues could be among those surveyed, including industrial overproduction and forced labor, drug pricing practices, and discrimination against U.S. technology corporations and digital goods.
This is a response to the earlier ruling by the U.S. Supreme Court that President Donald Trump's reciprocal tariff imposed under the International Emergency Economic Powers Act (IEEPA) was unlawful. With the reciprocal tariff nullified, the plan is to replace it with another tariff.
After the Supreme Court ruling, Trump issued a proclamation imposing a 10% global tariff on all countries. The basis is Section 122 of the Trade Act, which allows the president to impose a tariff of up to 15% for up to 150 days.
This temporary tariff will take effect at 12:01 a.m. on the 24th Eastern time and end at 12:01 a.m. on July 24. Because it has a set expiration date, a new tariff must be imposed through other tools such as Section 301 of the Trade Act to keep tariff revenue at a level similar to the reciprocal tariff.
Greer said the ongoing Section 301 investigations into China and Brazil will continue, adding that any new investigations will proceed on a "fast timeline."
The major trading partners among those surveyed are expected to include countries such as Korea where the United States posts large trade deficits. According to trade statistics released by the U.S. Department of Commerce on the 19th, the United States recorded a $56.4 billion deficit in trade with Korea last year. That is the 11th largest after China, the European Union (EU), Mexico, and others.