The Trump administration has broadened its scope of trade investigations to encompass 60 nations, including Canada, as part of its efforts 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, emphasizing the urgency of the investigations.
Recently, Greer’s office disclosed the initiation of investigations against the European Union and several other countries under Section 301 of the Trade Act of 1974.
An update released on Thursday evening expanded the list of countries under scrutiny, with the objective of examining whether these nations have implemented policies or practices deemed “unreasonable or discriminatory” that impede U.S. commerce.
Following a ruling by the U.S. Supreme Court invalidating President Donald Trump’s favored tariff mechanism utilized for “Liberation Day” tariffs and duties related to fentanyl on Canada, Mexico, and China, Trump imposed a global tariff of 10 percent using Section 122 of the 1974 Trade Act. Notably, these tariffs do not impact goods complying with the Canada-U.S.-Mexico Agreement (CUSMA) on trade.
Under Section 122, tariffs can potentially escalate to 15 percent and will expire after 150 days unless there is a congressional decision to extend them, which is unlikely to occur.
Canada is facing additional challenges from Trump’s separate Section 232 tariffs targeting specific sectors such as steel, aluminum, automobiles, and cabinetry.
In seeking to establish longer-term tariffs, Trump is pursuing Section 301 investigations, a process that involves public consultations and detailed reports.
Greer emphasized that if unfair trading practices, such as subsidies, excess capacity, or forced labor, are identified in any country, the administration can quantify the impact on U.S. commerce and seek resolution through dialogue. Failure to address the issues may result in tariff imposition.
The scope of the 301 investigation concerning Canada remains unclear, given the longstanding trade tensions between both countries, especially regarding Canada’s dairy supply management system.
These investigations coincide with the upcoming mandatory review of CUSMA involving Canada, Mexico, and the U.S. Despite doubts raised by Trump regarding the trade pact’s relevance and future, negotiations on the CUSMA review have been initiated with Mexico.
While Greer has highlighted challenges in negotiating with Canada, citing provincial restrictions like bans on U.S. alcohol sales, recent discussions took place in Washington between Greer and Canada’s trade representatives, including Janice Charette, Mark Wiseman, and Dominic LeBlanc.
