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The Trump administration could soon widen its tariff offensive, with US Trade Representative (USTR) Jamieson Greer saying a broad investigation into excess industrial capacity across key trading partners is nearing completion and could lead to another round of import duties.
Speaking to Fox News on Tuesday, Greer said the Office of the US Trade Representative was close to concluding a Section 301 investigation into what Washington views as unfair trade practices linked to industrial overcapacity in 16 major trading partners, including China, Vietnam, Mexico and the European Union.
“We’re going to finish up that investigation hopefully soon, and we’ll make a proposal,” Greer said, adding that the findings could pave the way for additional tariffs.
The comments signal that President Donald Trump’s administration is preparing to further expand its use of Section 301 of the Trade Act of 1974, the same legal provision it has increasingly relied upon to rebuild its tariff regime after setbacks in court.
Greer downplays economic impact of latest tariffs
Greer’s remarks came days after the Trump administration imposed new Section 301 tariffs on 60 trading partners over what it said was inadequate enforcement of bans on goods made using forced labour.
The USTR chief dismissed concerns that the latest duties could have broader economic consequences or complicate the US Federal Reserve’s monetary policy deliberations.
“Well, I don’t think it has an impact at all,” Greer said when asked whether the tariffs would influence the Fed.
“Now we have a set of tariffs, it’s on a smaller set, it’s not the whole world. A lot of the rates are pretty similar, so it should not have any economic impact that’s different than what we’ve been experiencing,” he added.
The new duties replaced a temporary universal 10 per cent tariff that had expired. Although they now apply to a smaller group of economies, the USTR has said the tariffs still cover 99.4 per cent of US imports.
India among countries affected
India is among the 60 economies covered under the new tariff regime but secured a lower 10 per cent tariff after taking steps to tighten its rules against imports made using forced labour.
Washington had initially proposed a 12.5 per cent tariff on Indian imports under its forced labour investigation. However, New Delhi’s decision earlier this month to amend its Foreign Trade Policy and empower authorities to restrict imports produced wholly or partly using forced labour helped India move into the lower tariff category.
The revised policy also adopted the International Labour Organization’s definition of forced labour, aligning India’s trade framework more closely with international standards.
The tariff decision comes even as India and the United States are working to finalise an interim trade agreement. US officials said last week that negotiations were “almost complete” following talks between External Affairs Minister S. Jaishankar and US Secretary of State Marco Rubio in Manila.
While the proposed trade pact could eventually provide greater certainty for exporters, Indian goods will continue to face the new 10 per cent tariff until a broader agreement is reached, subject to product-specific exemptions and existing US trade rules.
Fresh Section 301 probe could widen trade tensions
Attention is now shifting to the broader Section 301 investigation into industrial overcapacity, which could significantly expand the administration’s trade actions.
The probe focuses on what US officials describe as state-backed industrial policies that have created excess manufacturing capacity and distorted global markets. China is expected to remain the primary target, although Vietnam, Mexico, the European Union and several other trading partners are also under scrutiny.
If the USTR concludes that these practices unfairly harm American industries, the administration could impose another round of tariffs on a wide range of imported goods.
Such a move would further escalate Trump’s broader effort to reshape US trade policy through country-specific investigations rather than the sweeping reciprocal tariffs he announced earlier this year.
Greer defended the administration’s reliance on Section 301, saying the law provides a stronger legal basis for trade action than the emergency powers previously invoked by Trump.
His comments follow the US Supreme Court’s decision striking down Trump’s broad reciprocal tariffs that had been imposed under a national emergencies law. The administration has since shifted to using Section 301 investigations, which target specific countries or trade practices.
During Trump’s first term, Section 301 served as the legal basis for tariffs on hundreds of billions of dollars worth of Chinese imports, many of which remain in force despite years of legal challenges.
The latest probe into industrial overcapacity suggests the administration is preparing to deepen that strategy, potentially extending tariffs beyond forced labour concerns to what it sees as structural distortions in global manufacturing and trade.
With inputs from agencies.
