The U.S. administration of Donald Trump said on the 11th (local time) it will open a Section 301 of the Trade Act investigation against 16 countries, including Korea, Japan, and China. Section 301 of the Trade Act is a preliminary step to impose additional tariff on 16 economic entities.
Jamieson Greer of the Office of the United States Trade Representative (USTR) said at a White House-led press briefing that "the investigation focuses on countries that have run persistent, large trade surpluses," adding, "we expect the probe to reveal unfair trade practices by major trading partners related to structural overproduction in manufacturing." Greer said those surveyed include a total of 16 economic entities: Korea, China, Japan, the European Union (EU), Singapore, Switzerland, Norway, Indonesia, Malaysia, Cambodia, Thailand, Vietnam, Taiwan, Bangladesh, Mexico, and India.
Section 301 of the Trade Act, enacted in 1974, gives the administration retaliatory authority—such as imposing additional tariff and restricting investment—when U.S. trade is restricted or when there are unfair acts by foreign governments against U.S. corporations. Although it cites unfair foreign trade practices as its basis, it effectively serves as a tool the administration can use to pressure foreign countries with tariff and other measures at its own discretion.
Greer said additional probes are possible in areas other than "overcapacity and overproduction." He said, "there could be further investigations into issues U.S. industry has raised concerns about, such as digital services taxes, drug prices, market access for seafood and rice, and environmental issues like marine pollution." In addition, Greer said that apart from the Section 301 probe, regarding whether there will be an additional investigation under Section 232 of the Trade Expansion Act, a U.S. tool for item-specific tariff, "we do not expect a new Section 232 action in the next few weeks, but a Section 232 investigation remains one of the options during this administration's term."
Meanwhile, the USTR said it also plans to begin on the 12th a separate Section 301 investigation related to "the import ban on goods produced with forced labor and effective enforcement in the United States," targeting about 60 countries.