"United States Trade Representative (USTR) Jamieson Greer announced Wednesday the Trump Administration is initiating probes targeting China, the EU, Mexico, and more than a dozen other countries, associated with "structural excess capacity," or the overproduction of goods that exceed global demand, as part of Section 301 of The Trade Act of 1974."
"Section 301 is one of the tools the president has turned to after the Supreme Court struck down his sweeping tariffs implemented under IEEPA. The law arms the president with the power to impose country-specific tariffs on countries; the U.S. deems to have engaged in unfair labor practices."
"After Trump implemented tariffs under the law against China during his first term, Biden in 2024-during the four-year periodic review practice as required under the law-extended the tariffs on China, and even increased them on products like electric vehicles and medical materials."
Following Supreme Court rulings that invalidated tariffs implemented under the International Emergency Economic Powers Act, the Trump administration has shifted strategy to Section 301 of the Trade Act of 1974. USTR Jamieson Greer announced investigations targeting China, the EU, Mexico, and over a dozen other countries for structural excess capacity—overproduction exceeding global demand. Section 301 grants the president authority to impose country-specific tariffs on nations engaging in unfair trade practices. This approach has substantial legal precedent, with over 130 cases established under the law. Biden previously utilized Section 301, extending and increasing Trump's China tariffs during his 2024 periodic review. The legal framework appears robust for withstanding potential court challenges.
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