Donald Trump has intensified efforts to protect domestic industries during his second term by launching a fresh trade investigation into foreign industrial imports that he says are hurting the US market. The probe was initiated on Wednesday under Section 301 of the Trade Act of 1974, allowing the US government to examine trade practices of other nations and impose tariffs if they are found to be unfair.
The move comes after the Supreme Court of the United States struck down tariffs previously imposed by the Trump administration under the justification of an economic emergency. Following the court’s decision, the administration has opted for a more legally structured approach, using Section 301 investigations to potentially justify higher duties on imported goods.
The investigation targets as many as 16 major trading partners of the US, including India, China, the European Union, Mexico, Japan and South Korea. Southeast Asian countries such as Vietnam, Thailand and Bangladesh have also come under scrutiny.
According to US Trade Representative Jamieson Greer, several countries are producing far more goods than their domestic demand and exporting the surplus to the US at cheaper prices. He alleged that such practices are hurting American factories and discouraging investments in new manufacturing facilities within the United States.
Although India is among the countries under review, the Trump administration recently reduced tariffs on certain Indian products from 50% to 18% after New Delhi reportedly assured a reduction in crude oil imports from Russia. However, analysts say the new Section 301 probe could create uncertainty around the recent US–India trade understanding, as Trump continues to argue that higher tariffs on foreign goods will protect American workers and bring supply chains back to the United States.