The Trump administration has broadened its trade inquiries to 60 nations, including Canada, to reinforce the U.S. president’s tariff strategies, according to U.S. Trade Representative Jamieson Greer. The investigations under Section 301 of the Trade Act of 1974 were initiated by Greer’s office, targeting the European Union and several other countries. The U.S. Department will assess whether the named countries’ policies or practices are unjust or discriminatory, hindering U.S. commerce.
After the U.S. Supreme Court invalidated President Donald Trump’s preferred tariff tool for “Liberation Day” tariffs and duties on Canada, Mexico, and China, Trump imposed a 10% global tariff using Section 122 of the 1974 Trade Act. These tariffs exclude goods compliant with the Canada-U.S.-Mexico Agreement (CUSMA). The Section 122 tariffs can rise to 15% and expire after 150 days unless extended by Congress, which is unlikely.
Canada is also affected by Trump’s separate Section 232 tariffs on specific industries such as steel, aluminum, automobiles, and cabinetry. Trump aims to implement more enduring tariffs through Section 301 investigations, which involve public consultations and reports. Greer noted that if unfair trading practices like subsidies or forced labor are found, efforts will be made to resolve the issues with the countries in question. Failure to resolve could lead to the imposition of tariffs by the Trump administration.
The 301 investigation concerning Canada raises questions about the covered issues, as there have been longstanding challenges in the Canada-U.S. trade relationship, especially regarding Canada’s dairy supply management system, a point of contention for Trump. The investigations coincide with the impending mandatory review of CUSMA by Canada, Mexico, and the U.S.
President Trump has expressed skepticism about the trade pact, calling it “irrelevant” and questioning its continued relevance. While the U.S. has begun negotiations on the CUSMA review with Mexico, a country also under a 301 investigation, there has been no announcement of a similar move by Ottawa and Washington. Despite claims by Greer about Canada’s trade barriers, discussions took place in Washington last week between the Canadian trade team, led by Janice Charette and Mark Wiseman, and U.S. Trade Minister Dominic LeBlanc.