Washington: The United States has initiated a series of investigations into the manufacturing policies and practices of 16 trading partners, including Taiwan. This action is prompted by concerns surrounding excess capacity and overproduction in these countries.

According to Focus Taiwan, the investigations come shortly after the U.S. Supreme Court overturned comprehensive global tariffs previously imposed by President Donald Trump. The move is perceived as an effort by the Trump administration to reestablish tariff pressures on these trading partners. U.S. Trade Representative Jamieson Greer announced that the investigations, conducted under Section 301 of the Trade Act of 1974, aim to determine if the policies and practices of these countries contribute to “structural excess capacity and production” in manufacturing sectors and whether they are “unreasonable or discriminatory.”

The economies under scrutiny include Taiwan, China, Japan, South Korea, the European Union, Singapore, Switzerland, Norway, Indonesia, Malaysia, Cambodia, Thailand, Vietnam, Bangladesh, Mexico, and India, as reported by the Office of the United States Trade Representative (USTR). Section 301 provides the U.S. with the authority to impose retaliatory tariffs in response to perceived unfair trade practices, including substantial trade surpluses.

Greer highlighted that this action aligns with Trump’s initiative to revitalize the U.S. manufacturing sector and bolster domestic supply chains. He noted that structural overcapacity in foreign economies presents challenges to the U.S.’s reindustrialization efforts. Greer emphasized that the U.S. has experienced a significant loss of domestic production capacity in several sectors, placing it at a disadvantage compared to foreign competitors.

The USTR has requested consultations with the governments of the 16 trading partners as part of the investigation process. A public hearing related to these investigations is scheduled to commence on May 5.