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Global Trade · Section 301 · Tariffs · Trade Policy
The Trump administration is initiating new Section 301 trade investigations, signaling a renewed push for tariffs after previous levies were struck down by the Supreme Court.
These probes, led by the USTR, will target issues such as excess manufacturing capacity, digital services taxes, forced labor, and currency manipulation. USTR Greer previously indicated Asian nations with overproduction as prime targets, but Europe could also be impacted by digital services tax scrutiny.
This move lays the legal groundwork for potential new tariffs, though the investigations are expected to last until year-end and face likely legal challenges. The current 150-day tariffs are unlikely to conclude before these new investigations, creating a potential gap.
While the market is currently largely ignoring the report, investors should monitor which countries are targeted and their responses, especially given the inopportune timing amidst efforts to secure allies in the Middle East.
