The Trump administration has broadened its trade probes to include 60 nations, including Canada, to reinforce the tariff policies of the U.S. president.
“We are aiming for swift action,” stated U.S. Trade Representative Jamieson Greer in an interview with CNBC on Friday, emphasizing the urgency of the investigations.
The office of Greer disclosed on Wednesday the initiation of inquiries into the European Union and several other nations under Section 301 of the Trade Act of 1974.
An update released on Thursday evening expanded the list of countries under scrutiny, focusing on whether their policies or practices unfairly burden or restrict U.S. commerce.
Following a recent ruling by the U.S. Supreme Court against President Donald Trump’s preferred tariff mechanism used for “Liberation Day” tariffs and duties on Canada, Mexico, and China, Trump imposed a 10% global tariff under Section 122 of the 1974 Trade Act. Notably, these tariffs do not apply to goods compliant with the Canada-U.S.-Mexico Agreement (CUSMA).
The Section 122 tariffs could potentially escalate to 15% and expire after 150 days, requiring Congressional approval for an extension, which is likely to face challenges.
Canada has been particularly impacted by separate Section 232 tariffs imposed by Trump on specific sectors such as steel, aluminum, automobiles, and cabinetry.
The administration aims to implement longer-term tariffs through Section 301 investigations, which involve public consultations and reports. Greer emphasized that if unfair trading practices such as subsidies, excess capacity, or forced labor are detected, efforts will be made to address the issue with the respective countries. Should the issue remain unresolved, tariffs may be imposed.
As for Canada, there are ongoing uncertainties regarding the scope of the 301 investigation. Tensions persist in the Canada-U.S. trade relationship, with Trump frequently criticizing Canada’s dairy supply management system.
These investigations coincide with preparations for a mandatory review of CUSMA involving Canada, Mexico, and the U.S. Trump has expressed skepticism about the trade pact, questioning its relevance and suggesting it may have fulfilled its purpose.
While negotiations for the CUSMA review have begun officially between the U.S. and Mexico, Ottawa and Washington have not announced similar initiatives.
Despite challenges highlighted by Greer, such as provincial restrictions on U.S. alcohol sales in Canada, discussions took place last week in Washington between Greer and Canada’s trade officials, including Janice Charette, Mark Wiseman, and Dominic LeBlanc.