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Asian Economies · Tariffs · Trade Policy · US Trade
The Trump administration has launched new trade probes under Section 301 of the Trade Act of 1974, targeting several Asian economies, including China, Singapore, Thailand, and Taiwan.
These investigations focus on "excess industrial capacity" and "large or persistent trade surpluses" in manufacturing sectors, signaling potential for higher tariffs. This move is described as a "Plan B" by DBS strategist Philip Wee, aiming to establish a more durable legal basis for tariffs after a Supreme Court ruling struck down previous levies and before the temporary Section 122 global 10% rate expires in July.
Asian governments have expressed concerns and are challenging the USTR's data. Singapore disputes a reported $27 billion trade surplus, citing U.S. data showing a deficit.
Thailand notes its $51 billion surplus largely reflects exports by American companies. Taiwan, while named, emphasizes its existing trade agreement with Washington, which includes commitments for Taiwanese semiconductor companies to invest $250 billion in the U.S. for advanced chip manufacturing.
The U.S. will conduct consultations before imposing any levies.
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