By: Brian Walczyk, Compliance Manager, TradeInsights, LCB, CCS

March 11 marks the start of the United States Trade Representative’s (USTR) initiation of a new Section 301 investigation into several countries where evidence suggests they have “structural excess capacity and production in various manufacturing sectors” which threaten the President’s “reindustrialization efforts [which] continue to face significant challenges due to foreign economies.”

USTR Jamieson Greer had previously stated that Section 301 investigations were likely to follow the SCOTUS ruling on IEEPA as the USTR remains committed to the President’s global trade agenda. It is suspected that the investigation will move on an accelerated timeline.

This could mean additional tariffs are on the horizon, pending the investigation findings and recommendations from the USTR.

Section 301 of the Trade Act of 1974 is used to respond to unfair foreign trade practices, and has been a successful tool to implement additional tariffs in the past (see Section 301 tied to China’s Acts, Policies, and Practices Related to Technology Transfer, Intellectual Property, and Innovation – which has been legally challenged and still stands since 2017).

Countries, and their specific sectors under investigation, can be seen here.

There is a public comment period, and hearing, that will follow a structured timeline seen in the Federal Register Notice’s second page.

Summary of Countries and Sectors:

• China – electronic equipment, machinery, automobiles and auto parts, plastics, furniture, articles of iron or steel, apparel, organic chemicals, toys and sporting goods, optical, photo, technical, and medical apparatus, iron and steel, footwear, ships and vessels, aluminum, and many others.

• E.U. – chemicals and related products and machineries and vehicles.

• Singapore – semiconductors, electronic equipment, petrochemicals, and pharmaceuticals.

• Switzerland – refined gold, pharmaceutical products, organic chemicals, and machinery.

• Norway – mineral fuels and oils, certain electronic equipment, and machinery.

• Indonesia – metals, agricultural products, fuels, textiles, and construction goods.

• Malaysia – electronic equipment, mineral fuels and oils, machinery, animal and vegetable fats and oils, and optical, photo, technical, and medical apparatuses.

• Cambodia – garment, footwear, and travel goods.

• Thailand – autos and auto parts, machinery, and rubber.

• Korea – electronic equipment, automobiles and auto parts, machinery, steel, and ships and marine vessels.

• Vietnam – electronic equipment, machinery, footwear, apparel, furniture, and steel.

• Taiwan – semiconductors, electronic products, information technology products, and machinery.

• Bangladesh – textiles sector.

• Mexico – automotive sector, as well as construction, rail and ship transportation, and health.

• Japan – automobiles and auto parts, and optical, photo, technical, and medical apparatuses.

• India – textiles, health, construction goods, and automotive goods.

We will continue to monitor the situation and issue updates as needed. Please contact your V. Alexander account team, or you may also contact our Trade Compliance team at tradeinsights@valexander.com with any questions, and you can always follow us on our website www.valexander.com for updates on this and other topics.