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.

US Treasury Secretary Scott Besant on Wednesday made a strong attack on Europe regarding the recent trade agreement between India and the European Union (EU). He said that this deal has made it clear that the European Union has given priority to its business interests over supporting Ukraine.

Speaking to CNBC, Scott Besant said that this agreement was reached between India and EU on Tuesday after several years of negotiations, due to which he is very disappointed. European Commission President Ursula von der Leyen has called this agreement the mother of all deals. On this Besant said, ‘They should do whatever they feel is right for them. But to be honest, I found this attitude of Europe very disappointing.

EU distances itself from US tariffs on India

Besant alleged that European countries were buying such refined products from India, which were made from Russian oil, while they were not ready to support America’s strict trade policy on India. He said the US had imposed an additional 25 per cent tariff on Indian goods last year, but the EU did not support the move as it wanted to maintain its own trade agreement with India. Besant said, ‘Europe was not ready to join us and now it is clear that the reason for this was this trade deal.’

Scott Besant said that this policy of Europe weakens its statements regarding Ukraine. “Every time you hear a European leader speak about the importance of the Ukrainian people, remember that he put business above Ukraine,” he said.

What is the purpose of ‘Mother of All Deals’

The objective of the India-EU trade agreement is said to be to increase trade between the two sides and to reduce Europe’s dependence on America. According to Brussels, under this deal, tariffs on about 97 percent of traded goods will be eliminated or reduced. With this, EU exports to India can double by 2032 and European companies will save about 4 billion euros in duty.

Tension in US-Europe trade relations

These statements of Besant have come at a time when trade relations between America and Europe remain tense during the second term of President Donald Trump. US officials are angry that the EU has not yet implemented promises to cut tariffs under the framework agreement it signed with Washington in July.

US tariff pressure on other countries too

This tension increased further when America increased tariffs on other trading partners including South Korea. America says that these countries have shown slowness in implementing bilateral trade agreements. Describing tariffs as a way to create pressure, Besant said that such steps are helpful in taking the work forward.

Europe also targeted regarding energy trade

Speaking to ABC News on Sunday, Besant said that European countries are weakening their own security policies through energy trade. He said, ‘We have imposed 25 percent tariff on India for buying Russian oil. But what happened last week? Europe signed a trade deal with India.

Tariff on India up to 50%, signs of relief also

The Trump administration has imposed tariffs of up to 50 percent on Indian goods, of which 25 percent is directly related to India’s purchase of Russian oil. These tariffs were further increased in August, increasing tensions in US-India trade relations. Besant has recently indicated that there may be relief in tariffs in future. Speaking to Politico during the World Economic Forum, he said that there has been a sharp decline in the purchase of Russian crude oil by Indian refineries. He said, “25 percent tariffs are still in place, but I think there can be a way to remove them.”