The Trump administration launched a new trade investigation targeting 16 partners on Wednesday, amid attempts to replace President Donald Trump‘s tariffs under the International Emergency Economic Powers Act (IEEPA), ruled illegal by the Supreme Court.



The economies under scrutiny, apart from China, Mexico, and the EU, include Japan, India, Taiwan, Vietnam, South Korea, Singapore, Switzerland, Norway, Indonesia, Malaysia, Cambodia, Bangladesh, and Thailand. 



The investigations will be conducted under Section 301(b) of the Trade Act of 1974, as stated by U.S. Trade Representative Jamieson Greer. This law allows the U.S. to impose tariffs on imported goods from nations found to be engaging in unfair trade practices.



Greer stated that the Section 301 probes will examine &#34;acts, policies, and practices of certain economies concerning structural excess capacity and production in manufacturing sectors.&#34; He expects the investigation to assess whether the practices hinder or restrict U.S. commerce.



Greer also said that after completing the investigation, they will present their findings and may propose responsive measures, including tariffs, service fees, or other actions.



<h2>Trump Tariffs Spark State Lawsuits, Shortfall</h2>



This move by the Trump administration follows Treasury Secretary Scott Bessent’s announcement about a rise in global tariffs to 15% earlier this month. He also signaled a “strong relief” that the tariff rates would be back to their old rate within five months



Meanwhile, 24 Democratic states initiated a lawsuit against the administration, contesting the legitimacy of the new 10% tariff under Section 122 of the Trade Act of 1974. 



According to a report by the Committee for a Responsible Federal Budget, Trump’s new tariff, an attempt to replace the previous levies struck down by the Supreme Court, is estimated to generate only a fraction of the lost revenue, leaving a potential $1.7 trillion shortfall over the next decade. 



Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by a Benzinga editor



Photo courtesy: Phil Mistry on Shutterstock.com

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The Trump administration has initiated a trade investigation into 16 partners, including China, India, and the EU, to replace tariffs deemed illegal by the Supreme Court. U.S. Trade Representative Jamieson Greer stated that the probes will assess unfair trade practices under Section 301(b) of the Trade Act of 1974. This follows a rise in global tariffs and a lawsuit from 24 Democratic states against a new 10% tariff. The new tariff is projected to generate significantly less revenue, potentially leading to a $1.7 trillion shortfall over the next decade.

- The Trump administration initiated a trade investigation involving 16 countries, including Japan, India, and South Korea, to replace tariffs deemed illegal by the Supreme Court.  
- U.S. Trade Representative Jamieson Greer indicated that the investigations will focus on unfair trade practices under Section 301 of the Trade Act of 1974, with potential tariff measures upon completion.  
- This decision follows the announcement of increased global tariffs and legal challenges from 24 Democratic states regarding the new tariff rates, which may result in a significant revenue shortfall.

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Trump Launches Trade Probe On 16 Partners, Including China, India, EU