What Trump’s Section 301 investigations mean for trade tariffs

Here’s CNBC’s brief guide to Section 301: what they are, why the White House has resorted to using them, and what President Donald Trump’s administration hopes to accomplish.

Simply put, Section 301 of the Trade Act of 1974 allows investigation of perceived unfair trade practices to determine whether “the acts, policies, or practices of a foreign country are unreasonable or discriminatory and tax or restrict U.S. commerce.”

The Office of the United States Trade Representative (USTR) Jamieson Greer on Wednesday announced a series of new investigations targeting 16 trading partners, from Singapore and Switzerland to India and Norway. A complete list is here.

Section 301 investigations are not new, as there are several ongoing investigations in Brazil and China. The first Trump administration investigated foreign trade practices under Section 301 six times, and two investigations into China and the EU resulted in the imposition of tariffs. Former President Joe Biden’s administration also conducted Section 301 investigations.

The latest investigations will examine whether these acts, policies or practices burden or restrict U.S. trade and what actions, if any, should be taken.

If investigations fail against the economies in question, the USTR has the authority to impose new tariffs or other restrictions on imports., that could arise in summer.

The trade agency could also withdraw or suspend concessions from trade agreements, or reach agreements with the economies in question if they agree to “cease the conduct at issue or compensate the United States,” the USTR said.

Retaliatory measures should “affect goods or services of the foreign country in an amount equivalent in value to the burden or restriction imposed by that country on” US trade, he added.

The Section 301 investigations follow the US Supreme Court’s ruling that the Trump administration’s “reciprocal” tariffs, imposed on a range of trading partners in April 2025 under the International Emergency Economic Powers Act of 1977, were illegal.

That left the administration looking for other ways to reimpose the tariffs that were repealed.

The White House initially responded to the Supreme Court ruling by imposing a temporary 10% “universal” tariff (and threatening a higher 15% tax, which could be implemented soon) on all imported goods using Section 122 of the Trade Act of 1974.

However, these tariffs are only temporary and Trump has made no secret of his desire to find a way to restore the tariffs that were rejected.

The latest Section 301 investigations specifically address “structural excess capacity and production in manufacturing sectors,” amid claims that rival economies are “dumping” excess production into U.S. markets and threatening domestic manufacturers.

The USTR noted Wednesday that such practices pose a “serious challenge” to Trump’s reindustrialization efforts and make it difficult to “relocalize critical supply chains and create good-paying jobs for American workers.”

The United States blames this dynamic for persistent trade deficits with its trading partners and for hampering growth.

“The United States will no longer sacrifice its industrial base to other countries that may be exporting their excess capacity and production problems to us,” Greer said Wednesday.

Consultations will now take place with the economies whose trade practices are in the spotlight. The USTR will hold a public hearing covering each economy investigated beginning on May 5.

“After all that, the USTR will have our conclusions and our analysis, and we will propose, if necessary, a response action,” Greer said. “Responsive action can take various forms. It can be fees, it can be fees for services, it can be other things,” he said.

China and the EU are among the economies that have rejected the investigations, warning that trade deals struck with Washington over the past year could be in jeopardy.

Greer is due to announce another Section 301 investigation Thursday that looks into imported products made using forced labor.

Analysts say the timing of the latest trade investigations is curious, given the White House’s focus on the ongoing military operation against Iran. The use of Section 301 is seen as an overt attempt to resurrect Trump’s global tariff strategy, which is currently subject to time restrictions, with the temporary tariffs set to expire in July.

“The timing is curious. You might think the US administration is very busy right now, but apparently that’s not the case,” John Woods, chief investment officer for Asia at Lombard Odier, told CNBC on Thursday.

Section 301 “will essentially be a substitute for trade tariffs that have until now been imposed but subsequently blocked by the Supreme Court,” he said, adding that the United States would use the investigations as leverage for future negotiations on trade agreements.

Goldman Sachs’ Tim Moe said it’s not surprising that the Trump administration is resorting to using Section 122 and Section 301 to target its business partners after the Supreme Court decision.

“It shouldn’t be a total surprise that this was announced. The timing, of course, is always unexpected, but I think it shouldn’t be a total surprise. That’s number one. Number two is that Section 301 requires a process; there has to be an investigation, and there have to be factual developments… (so) this will take some time to develop.