The Trump administration has broadened its trade inquiries to encompass 60 nations, including Canada, with the aim of supporting the tariff policies of the U.S. president.
“We are striving to expedite the process,” stated U.S. Trade Representative Jamieson Greer during an interview with CNBC on Friday. “Our goal is to move swiftly within a few months.”
The office of Greer announced on Wednesday the commencement of investigations against the European Union and a few other countries under Section 301 of the Trade Act of 1974.
A news release issued by the office on Thursday expanded the list of countries under scrutiny. It highlighted that the investigations will assess whether the named countries have policies or practices that are deemed “unreasonable or discriminatory and impede or restrict U.S. commerce.”
Following a recent ruling by the U.S. Supreme Court, President Donald Trump’s preferred tariff tool for his “Liberation Day” tariffs and fentanyl-related duties on Canada, Mexico, and China was invalidated.
In response to the ruling, Trump imposed a global tariff of 10% using Section 122 of the 1974 Trade Act. These tariffs do not apply to goods compliant with the Canada-U.S.-Mexico Agreement (CUSMA).
The Section 122 tariffs have the potential to increase to 15% and will expire after 150 days unless Congress votes to extend them, which is unlikely to happen.
Canada is also facing challenges from Trump’s separate Section 232 tariffs on specific sectors such as steel, aluminum, automobiles, and cabinetry.
Trump aims to introduce longer-term tariffs through Section 301 investigations, but the process 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 harm to U.S. commerce can be quantified to address the issue with the country in question.
If the issue remains unresolved, Greer stated that the Trump administration will impose tariffs.
The scope of the 301 investigation concerning Canada remains uncertain, given the ongoing trade tensions between the two countries and Trump’s repeated criticisms of Canada’s dairy supply management system.
The 301 investigations coincide with preparations by Canada, Mexico, and the U.S. for a mandatory review of CUSMA.
Trump has expressed skepticism about his commitment to the trade agreement, describing it as “irrelevant” and suggesting it may have fulfilled its purpose.
While negotiations for the CUSMA review have been officially initiated by the U.S. with Mexico, which is also under a 301 investigation, similar actions have not been announced by Ottawa and Washington.
Despite Greer’s claims of obstacles 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.