Section 301 of the Trade Act of 1974.
US law authorizing retaliation against violations of trade agreements
US and Mexico Seek Interim Trade Deal Before Midterms
The US and Mexico are pushing to seal a bilateral USMCA-related deal before the U.S. midterms, with Canada effectively sidelined as talks focus on higher North American content, relief from Section 232 tariffs, and closing loopholes around third-country shipments, including Chinese involvement. Amid ongoing meetings and a sense of urgency, officials say a year-end agreement is plausible as both sides seek tariff relief for autos and aluminum and to reassure markets that supply chains remain tightly integrated.
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About Section 301 of the Trade Act of 1974
Section 301 of the US Trade Act of 1974 authorizes the president to take all appropriate action, including tariff-based and non-tariff-based retaliation, to obtain the removal of any act, policy, or practice of a foreign government that violates an international trade agreement or is unjustified, unreasonable, or discriminatory, and that burdens or restricts US commerce. Section 301 cases can be self-initiated by the United States Trade Representative (USTR) or as the result of a petition filed by a firm or industry group. If USTR initiates a Section 301 investigation, it must seek to negotiate a settlement with the foreign country in the form of compensation or elimination of the trade barrier. For cases involving trade agreements, the USTR is required to request formal dispute proceedings as provided by the trade agreements. The law does not require that the US government wait until it receives authorization from the World Trade Organization (WTO) to take enforcement actions, and the President is increasingly focused on enforcing intellectual property (IP) rights under the "Special" 301 amendments but the US has committed itself to pursuing the resolution of disputes under WTO agreements through the WTO dispute settlement mechanism, which has its own timetable.
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