‘Tariff bomb’ on India amid war with Iran; In preparation to topple Trump, investigation started against 16 countries including China

Donald Trump Trade Policy: US President Donald Trump’s government has launched a new investigation into trade policies and practices of 16 major trading partner countries that the US considers ‘unfair’. The move raises the possibility of additional tariffs or other economic penalties being imposed on many countries, including India. This decision comes at a time when the US Supreme Court has rejected some of the previously imposed tariffs, after which the Trump administration is looking for new options.

Apart from India, the European Union, China, Japan and many other big economies are included in this investigation regarding excessive industrial production capacity. It is believed that this step may increase trade tensions between America and its major trading partners.

US trade representative’s tough stance

According to news agency AFP, US Trade Representative Jameson Greer said that the Trump administration is starting two separate investigations. The first investigation focuses on excess production capacity, while the second investigation concerns the import of goods made with forced labour.

He said new tariffs could be imposed against China, the European Union, India, Japan, South Korea and Mexico by this summer. The list also includes Taiwan, Vietnam, Thailand, Malaysia, Cambodia, Singapore, Indonesia, Bangladesh, Switzerland and Norway. However, America’s second largest trading partner Canada has been kept out of this investigation.

America will definitely take such a step

Greer said that America has to protect its jobs and it is important to ensure that trade with its trading partners is completely fair. He warned that if it becomes necessary to impose tariffs to solve the problem, America will definitely take such a step. However, he did not clarify whether the potential tariffs would be different for different countries or would apply equally to all.

Questions on China’s electric vehicle capacity

According to Greer, China’s electric vehicle production capacity far exceeds its domestic demand. Despite this, China’s leading EV manufacturer BYD is setting up factories in Uzbekistan, Thailand, Brazil, Hungary and Turkey and is also planning to expand in Europe.

Furthermore, the large trade surpluses of Germany and Ireland have been cited as examples of the EU’s excess industrial capacity. At the same time, despite the trade deficit with America, Singapore’s large capacity of semiconductor production and huge export of fuel and seafood from Norway have also been presented as examples.

Investigation regarding forced labor also

The second investigation is regarding the import of goods made with forced labour. According to Greer, this investigation could affect about 60 trading partner countries, which could have a widespread impact on the global supply chain.

The US has already taken action against solar panels and other goods coming from China’s Xinjiang region under the Uyghur Forced Labor Protection Act signed by former President Joe Biden. The US alleges that China has built labor camps for Uighurs and other Muslim minorities, although China denies these allegations.

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Important steps before the meeting between Trump and Xi Jinping

This step of the Trump administration is also considered strategically important. This decision has been taken at a time when an important meeting is proposed between US President Donald Trump and Chinese President Xi Jinping in Beijing in April. It is believed that this new investigation may also impact the upcoming talks between the two leaders.