US Opens Trade Probes Against Japan, Over A Dozen Other Countries

WASHINGTON, March 12 (Bernama-Kyodo) --  US President Donald Trump's administration on Wednesday launched trade investigations into what it sees as unfair practices by China, Japan and over a dozen other countries, in a step to replace his sweeping tariff regime that was invalidated by the Supreme Court last month, Kyodo News reported.

US Trade Representative Jamieson Greer said the probes are aimed at uncovering "a variety of unfair trading practices related to excess capacity and production in manufacturing" and at reviving similar high tariffs on imported goods.

"Our view is that key trading partners have developed production capacity that is really untethered from the market incentives of domestic and global demand," Greer told reporters.

The other trading partners facing the investigations, carried out under Section 301 of the Trade Act of 1974, are the European Union, Bangladesh, Cambodia, India, Indonesia, Malaysia, Mexico, Norway, Singapore, South Korea, Switzerland, Taiwan, Thailand and Vietnam, Greer said.

The statute, which allows the US government to impose tariffs in response to a foreign country's alleged unfair practices, was a favourite tool of Trump for justifying higher tariffs on Chinese imports when he started a trade war with Beijing during his first term as president.

After the US top court on Feb. 20 struck down a large chunk of Trump's far-reaching tariffs imposed under the International Emergency Economic Powers Act, his administration introduced a new 10 per cent global duty.

However, the new 10 per cent surcharge, relying on a different legal framework, can only last 150 days unless Congress approves an extension.

Greer said the Trump administration seeks to complete the investigations as quickly as possible and prepare for new Section 301 tariffs within the 150-day period.

The US Trade Representative's office is in charge of conducting the probes, aiming to identify "signs" of industrial overcapacity, citing, for example, a trade surplus with the United States, and main problems in each export-reliant nation, which Greer said could include subsidies, market access barriers and suppressing domestic wages.

The office said it has requested consultations with the governments of the targeted trading partners. The statute also requires additional procedures, such as a public hearing and comments, before tariffs can be imposed.

Even after the highest court struck down Trump's so-called reciprocal tariffs, as well as fentanyl-related levies he imposed on goods from China, Canada and Mexico, Greer and other US officials have said that the administration seeks to maintain the previous country-by-country tariff rates by using different legal authorities.

They have also said the rate of the temporary levy will be raised to 15 per cent.

Prior to the court's ruling, Japanese imports were subject to a 15 per cent country-specific tariff.

When Japan's industry minister Ryosei Akazawa met with US Commerce Secretary Howard Lutnick in Washington last week, he urged the United States not to impose higher tariffs than those agreed last summer between the two countries.

On Friday, in addition to targeting manufacturing sectors, Greer suggested that more trade Section 301 investigations are under consideration. He said issues related to digital services, pharmaceutical pricing, rice and seafood could be addressed.

He added that the administration is expected to initiate, possibly on Thursday, a separate Section 301 investigation into about 60 countries to ensure they are banning the import of goods made with forced labour.

-- BERNAMA-KYODO