The policy shift follows a court decision invalidating tariffs the administration previously relied upon for government revenue. Officials now hope new trade measures can restore that funding stream, AP News reports.
**New Trade Investigations Begin**
Jamieson Greer, the U.S. Trade Representative, announced fresh investigations targeting multiple foreign economies. The inquiry will examine whether government subsidies have created excess industrial capacity that harms U.S. manufacturers. Authorities will review policies affecting producers in regions including the European Union. The probe also covers major trading partners such as China, Japan, and South Korea.
A separate investigation will examine whether countries fail to block imports tied to forced labor practices. Officials will review policies affecting China, Canada, Mexico, Brazil, and Australia. Regulators will also assess the European Union under that investigation.
Public hearings for the industrial subsidy investigation are scheduled for May 5. Authorities have also scheduled a second hearing on forced labor concerns for April 28.
**Fiscal Implications and Debt Outlook**
The Committee for a Responsible Federal Budget (CRFB), a nonpartisan, non-profit organization, warns that the federal debt could approach $58 trillion if spending continues at its current pace. CRFB estimates the national debt could reach about 125% of the economy by 2036. Earlier projections placed debt closer to $56 trillion.
Annual deficits may also climb to roughly 7.1% of GDP under that scenario. The baseline forecast previously placed the deficit near $3.1 trillion.
https://www.benzinga.com/news/politics/26/03/51258693/trump-opens-new-trade-probes-to-support-tariffs-on-subsidies-and-forced-labor
