The Trump administration has broadened its trade inquiries to encompass 60 nations, including Canada, in a bid to reinforce the tariff strategies of the U.S. president.
“We are aiming for swift action,” remarked U.S. Trade Representative Jamieson Greer in an interview with CNBC on Friday. “Our goal is to expedite the process within a few months.”
An announcement from Greer’s office on Wednesday detailed the commencement of investigations into the European Union and a few other countries under Section 301 of the Trade Act of 1974.
A news release issued on Thursday evening expanded the roster of countries under scrutiny, with the department examining whether the named countries are engaging in policies or practices deemed “unreasonable or discriminatory, burdening or restricting U.S. commerce.”
Following a recent ruling by the U.S. Supreme Court against President Donald Trump’s favored tariff tool, previously used for “Liberation Day” tariffs and fentanyl-related duties on Canada, Mexico, and China, Trump imposed a 10% 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.
Under Section 122, tariffs can only rise to 15% and expire after 150 days unless extended by Congress, which is unlikely. Canada is additionally impacted by Trump’s separate Section 232 tariffs on specific industries like steel, aluminum, automobiles, and cabinetry.
Trump aims to establish longer-term tariffs through Section 301 investigations, a process that involves public consultations and reports.
Greer emphasized that if unfair trading practices such as subsidies, excess capacity, or forced labor are found in any country, the U.S. can assess the harm to its commerce and seek resolution with the respective country. Failure to resolve the issue may result in the imposition of tariffs by the Trump administration.
The scope of the 301 investigation into Canada’s practices remains unclear, given persistent challenges in the Canada-U.S. trading relationship, particularly Trump’s objections to Canada’s dairy supply management system.
These investigations coincide with the impending mandatory review of CUSMA by Canada, Mexico, and the U.S. Trump has expressed skepticism about the trade pact’s relevance, suggesting it may have fulfilled its purpose.
While the U.S. has initiated negotiations for the CUSMA review with Mexico, subject to a 301 investigation as well, similar actions have not been announced by Ottawa and Washington. Despite Greer’s assertions about barriers hindering negotiations with Canada, such as provincial bans on U.S. alcohol sales, he recently met with Canada’s new trade delegation in Washington.
The meeting involved Canada’s chief trade negotiator Janice Charette, newly appointed Ambassador to the U.S. Mark Wiseman, and Canada-U.S. Trade Minister Dominic LeBlanc.
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