Donald Trump: The Trump administration has opened a new trade investigation into manufacturing in different countries. In an announcement, 16 economies including India have been highlighted for unfair trade and manufacturing practices.
The administration would now start investigations under Section 301 of the United States Trade Act 1974. This could result in new import taxes.
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Donald Trump To Levy New Taxes
Donald Trump may levy new import taxes on some of its largest trading partners such as the European Union, China, India, Taiwan, Japan, South Korea and Mexico. Other countries include Thailand, Malaysia, Cambodia, Vietnam, Switzerland, Norway, Indonesia, Singapore and Bangladesh.
US Trade Representative Jamieson Greer commented that the United States of America would no longer sacrifice its industrial base to countries that may be exporting their concerns with excess capacity and production with the United States. Greer added that the investigations underscore the commitment of President Trump to create good-paying jobs for the workers of America across its manufacturing sectors and reshore critical supply chains.
Greer commented that the United States of America has lost significant domestic production capacity or has worryingly fallen much behind competitors from foreign competitors.
US Trade Act Of 1974
Section 301 of the US Trade Act of 1974 is designed for addressing unfair foreign practices that impact US commerce. It may be used for responding to unreasonable, unjustifiable or discriminatory practices by foreign governments burdening or restricting the sphere of commerce in the United States.
Recently, a bilateral trade deal was announced by India and the United States. This resulted in Trump administration reduce its economic tariffs to 18 percent from 50 percent. The tariff reduction came after a guarantee by New Delhi that it would not purchase crude oil from Russia. After the Iran war broke out, the Trump administration “allowed” India to buy crude oil from Russia so that the energy crisis does not get worsened.
