The Trump administration has broadened its trade inquiries to 60 nations, including Canada, to reinforce the tariff strategies of the U.S. president.
“We are aiming for swift progress,” stated U.S. Trade Representative Jamieson Greer during an interview with CNBC on Friday. “Our goal is to expedite the process within a few months.”
The office led by Greer disclosed on Wednesday that it had initiated investigations on the European Union and a few other nations under Section 301 of the Trade Act of 1974.
A news release issued on Thursday evening expanded the list of countries under scrutiny. The release indicated that the investigations would examine whether the named countries have policies or practices that are deemed unreasonable or discriminatory, thereby hindering or limiting U.S. commerce.
Following a recent ruling by the U.S. Supreme Court, President Donald Trump’s preferred tariff tool was invalidated, which he had utilized for imposing tariffs on “Liberation Day” and fentanyl-related duties on Canada, Mexico, and China.
In response to the court ruling, Trump imposed a global tariff of 10 percent 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.
The Section 122 tariffs have the potential to increase to 15 percent and will expire after 150 days unless Congress opts to extend them, although obtaining such an extension is unlikely.
Canada is also facing challenges from Trump’s separate Section 232 tariffs on specific sectors, including steel, aluminum, automobiles, and cabinetry.
Trump aims to implement longer-term tariffs through Section 301 investigations, which involve public consultations and detailed reports.
Greer emphasized that if unfair trading practices such as subsidies, excess capacity, or forced labor are discovered in any country, the harm to U.S. commerce can be quantified, leading to efforts to resolve the issue with the respective country. If the issue remains unresolved, the Trump administration will impose tariffs.
The ongoing 301 investigation concerning Canada raises questions about its scope, particularly in light of persisting tensions in the Canada-U.S. trade relations, with Trump frequently criticizing Canada’s dairy supply management system.
These investigations coincide with the upcoming mandatory review of CUSMA by Canada, Mexico, and the U.S.
While Trump has expressed skepticism about the trade pact negotiated during his first term, calling it “irrelevant,” discussions for the CUSMA review have officially commenced with Mexico. Although Ottawa and Washington have not announced a similar initiative.
Greer has frequently alluded to barriers hindering negotiations with Canada, such as provincial restrictions on U.S. alcohol sales. Nevertheless, he recently met with Canada’s new trade delegation in Washington, including Canada’s chief trade negotiator Janice Charette, newly appointed Ambassador to the U.S. Mark Wiseman, and Canada-U.S. Trade Minister Dominic LeBlanc.