US Trade Investigation: In America, the Donald Trump administration has started a new trade investigation into industrial production abroad. This investigation started on Wednesday. According to reports, this step was taken when the US Supreme Court canceled the old import duty imposed by Trump citing economic emergency. In this new investigation, 16 big economies including India have been included.
Making the official announcement, US Trade Representative Jameson Grier said that the government will start an investigation under Section 301 of the Trade Act of 1974. After this investigation, America can impose new import tax on goods coming from these countries.
Which countries were included
Many big trading partner countries of America have been included in this investigation. These include China, European Union, Mexico, India, Japan, South Korea and Taiwan. Apart from this, Switzerland, Norway, Indonesia, Singapore, Thailand, Malaysia, Cambodia, Vietnam and Bangladesh are also under investigation.
America’s concern about production capacity
According to news agency Bloomberg, while talking to journalists, Jameson Grier said that America believes that many big trading partner countries have increased production capacity so much that it is not related to domestic and global demand. In an official statement, Grier said that America will no longer allow its industrial base to be weakened by other countries. He says that many countries are blaming America for the problem of their excessive production and are sending large quantities of goods here.
He said that it is clear from these investigations that the Trump administration wants to re-establish the essential supply system within America and create good-paying jobs for American workers.
Talk of impact on American industries
Grier further said that the Trump administration’s industrial development efforts face a big challenge. Production in many foreign economies is exceeding requirements. In many areas, America’s trading partner countries are producing more goods than they can use in their own countries. For this reason extra goods are being sent to other countries.
This is affecting America’s domestic industries and in many cases, plans to set up or expand new factories in America are also being halted. America’s production capacity in some areas has reduced significantly and in many cases it has lagged behind foreign competitors.
The deal has been done recently
Recently a bilateral trade agreement has been announced between India and America. After this agreement, the Trump administration reduced the import tax imposed on India from 50 percent to 18 percent. According to America, this decision was taken when India assured to reduce and stop oil purchases from Russia. Complete details of this trade agreement between India and America have not been revealed yet. Despite this, both the countries have called it a historic agreement. It is believed that this may strengthen the trade relations between the two countries in the future.
