US Opens New Probe Targeting Taiwan Over Trade Surplus
The US has launched a new trade investigation into Taiwan under Section 301. This is part of the Trump administration's push to reimpose tariffs after the Supreme Court struck down last year's "liberation day" tariffs in February. The probe targets 16 economies, with Taiwan under scrutiny for its large trade surplus with the US.
REPORTER:
The US has launched new trade investigations after the Supreme Court ruled President Trump’s global tariffs unconstitutional.
This is part of the Trump administration’s push to rebuild tariffs, after the Supreme Court struck them down last month.
US officials are saying this is to stop countries from backing out of their original trade deals.
Taiwan is one of 16 economies targeted by the US under this new legal authority.
Known as SECTION 301, it is: “designed to address unfair foreign practices affecting US commerce, to respond to unjustifiable, unreasonable, or discriminatory foreign government practices.”
This new provision basically allows the US to retaliate if the investigation finds what it calls “unfair trade practices.”
As to why Taiwan is being targeted—it's because of its large trade surplus with the US, especially in semiconductors and tech products.
Taiwan seems to have been anticipating this action; it said today that the US notified them about the investigation before it was announced.
Immediately after the Supreme Court ruling, Trump imposed a 10% global tariff with threats to increase it to 15%.
But that will expire in July, so this new investigation is meant to keep up the pressure.
The Cabinet says it has been in contact with the US, and that the investigation outcome should not affect the original trade deal.
Michelle Lee (CABINET SPOKESPERSON):
We believe once the investigation is complete
the outcome will reflect the results
of our previous negotiations
ensuring that the advantages and preferential treatment
we already secured will not be diminished.
REPORTER:
Opposition parties had been quite critical of the deal – which they warned could hollow out Taiwan’s chip industry.
With this new development, one opposition lawmaker says the government is once again letting the US take advantage of Taiwan as it pursues its own interests.
Either way, this provision is a more legally robust way to impose tariffs than Trump’s original ones.
It seems Taipei is hoping the outcome of the probe will allow it to stick to the original trade deal terms.
