Biden administration revives its tariff agenda,targeting over 60 economies,including allies,under new legal framework. Follows Supreme Court's February ruling that struck down Trump's broader tariff plan,which relied on emergency powers deemed unconstitutional.
On June 2, U.S. Trade Representative (USTR) announced intention to impose tariffs up to 12.5% on imports from countries it says haven't addressed forced labor in supply chains . List includes nations from EU to Canada,even Argentina, Bangladesh,Mexico. Analysts suggest countries might seek alternative trade partnerships,distancing from U.S . influence.
Trade lawyers Shantanu Singh and Vikram Naik said renewed tariffs could accelerate trade deals among affected nations. They pointed to EU-Mercosur deal and EU-India agreement,linking two billion people. Such pacts might soften impact of U.S. tariffs.
USTR's new strategy uses Section 301 of Trade Act of 1974,letting U.S. probe foreign practices unfair to American business. USTR Jamieson Greer stressed trading partners' failure to combat forced labor is unacceptable,creating uneven playing field for American workers.
In March,USTR started investigating 60 economies,concluding they failed to enforce forced labor bans effectively. Proposed 10% tariff on some countries,12.5% on others. Comments due by July 6,hearings set for July 7 .
Experts argue shift to Section 301 is strategic to regain leverage in trade talks after Supreme Court ruling weakened administration's power. Ajay Srivastava,founder of Global Trade Research Initiative,said new investigations serve as pressure to push countries into quick trade deals.
Unlike previous emergency powers,Section 301 requires more structured process for tariffs,including public consultations and formal rulings. Madeline Chalecki from Atlantic Council noted this method offers more legal certainty,though slower to implement.
Some countries already pushing back against proposed tariffs. EU says it's implementing its own forced labor ban,questions inclusion in U.S. proposal . China condemned tariffs as unilateral measures disguised as labor concerns. India stays neutral,keeps negotiating with U.S .
Despite potential disruption to global trade,experts like Srivastava think overall impact may be limited. Targeting many partners at once could hike import costs,snarl supply chains,affecting U.S. businesses and consumers…
