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 in an interview with CNBC on Friday, emphasizing the urgency to act within a few months.
The office of Greer recently declared the initiation of investigations under Section 301 of the Trade Act of 1974 against the European Union and several other countries. A subsequent news release on Thursday expanded the scope of countries under scrutiny. The investigations will assess whether these countries have policies or practices that unreasonably or discriminatorily impede U.S. commerce.
Following a ruling by the U.S. Supreme Court that invalidated President Donald Trump’s preferred tariff tool for “Liberation Day” tariffs and fentanyl-related duties on Canada, Mexico, and China, Trump introduced a 10% global tariff using Section 122 of the 1974 Trade Act. However, these tariffs do not apply to goods compliant with the Canada-U.S.-Mexico Agreement (CUSMA).
The Section 122 tariffs can only rise to 15% and expire after 150 days unless Congress votes for an extension, which is unlikely. Canada is also affected by separate Section 232 tariffs imposed by Trump on specific sectors such as steel, aluminum, automobiles, and cabinetry.
Trump aims to implement prolonged tariffs through Section 301 investigations but the process involves public consultations and reports. Greer highlighted that if unfair trading practices like subsidies, excess capacity, or forced labor are found in any country, they would quantify the harm to U.S. commerce and seek to resolve the issue. Failure to address the issue may result in the imposition of tariffs by the Trump administration.
The focus of the 301 investigation on Canada remains unclear, given the historical trade disputes between the two countries, particularly regarding Canada’s dairy supply management system. The investigations coincide with the upcoming mandatory review of CUSMA by Canada, Mexico, and the U.S.
While Canada and Mexico have officially started negotiations on the CUSMA review, Trump has expressed skepticism about the trade pact’s relevance. He questioned its utility and hinted at potential revisions. Despite claims by Greer about obstacles in dealing with Canada, discussions have taken place between the Canadian trade delegation and U.S. officials 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.
[Source](https://www.cbc.ca/news/business/trump-trade-investigation-canada-9.7127596)
