The Trump administration has broadened its trade inquiries to encompass 60 nations, including Canada, to bolster the U.S. president’s tariff strategies. U.S. Trade Representative Jamieson Greer expressed urgency in the process, aiming for swift progress within a few months.
Under Section 301 of the Trade Act of 1974, Greer’s office initiated investigations into the European Union and several other countries, following an announcement on Wednesday. A subsequent news release on Thursday expanded the scope of countries under scrutiny, focusing on evaluating if their policies or practices unreasonably restrict U.S. commerce.
Recently, the U.S. Supreme Court invalidated President Trump’s preferred tariff tool, used for “Liberation Day” tariffs and duties on Canada, Mexico, and China. In response, Trump imposed a 10% global tariff under Section 122 of the 1974 Trade Act, exempting goods compliant with the Canada-U.S.-Mexico Agreement (CUSMA).
Trump’s separate Section 232 tariffs on industries like steel, aluminum, automobiles, and cabinetry have impacted Canada significantly. The administration aims to establish longer-term tariffs through Section 301 investigations, a process involving public consultations and reports.
Greer emphasized the intent to address unfair trading practices involving subsidies, excess capacity, or forced labor by quantifying the harm to U.S. commerce. Failure to resolve such issues may lead to the imposition of tariffs by the Trump administration.
The ongoing 301 investigation into Canada raises questions about its scope, considering persistent challenges in the Canada-U.S. trade relationship, particularly Trump’s criticisms of Canada’s dairy supply management system. These investigations coincide with preparations for a mandatory review of CUSMA by Canada, Mexico, and the U.S.
While Trump has expressed skepticism about the trade pact’s relevance, negotiations for the CUSMA review have commenced between the U.S. and Mexico. Despite claims of barriers hindering negotiations with Canada, Greer engaged with Canada’s trade representatives in Washington, including Janice Charette, Mark Wiseman, and Trade Minister Dominic LeBlanc.
