Kolkata: Within three weeks of the US Supreme Court striking down the IEEPA tariffs — retaliatory tariffs in popular parlance — initiated by US president Donald Trump, the US president has hatched a new plan to erect a new tariff wall on goods entering the US soil from 16 major trading partners including India.
Countries under investigation
The US Trade Representative Jamieson Greer has said that the “Section 301” unfair trade practices investigation can result in fresh tariffs against China, India, the EU, Japan, South Korea and Mexico as early as this summer. Other countries in the line of Trump’s fire are Taiwan, Vietnam, Thailand, Malaysia, Cambodia, Singapore, Indonesia, Bangladesh, Switzerland and Norway.
Key factors to investigate
Greer has stated that the investigation will look at factors such as a persistently large trade surplus, heavy government subsidies, unprofessional activities by state-run companies, wage pressures apart from weak environmental and labor standards. The Trump administration feels that all these factors contribute to the rise of cheap goods in the global market, which, in turn, put pressure on American industries.
Possible timeline of new tariffs
Donald Trump is in a hurry. He wants the administration to wrap up investigation July. Currently, the 10% temporary tariffs imposed in February are in effect for 150 days according to US law. According to the plan, public comments on the plan will be taken until April 15, and a public hearing will be held around May 5. A decision on implementing new tariffs could be made after this.