USTR Launches 301 Investigation on Global Manufacturing Overcapacity

On March 11, 2026, the U.S. Trade Representative (USTR) announced the launch of a Section 301 investigation targeting 16 economies over structural overcapacity and production issues in the manufacturing sector, signaling a potential new wave of tariffs.

USTR Jamieson Greer stated that under Section 301(b) of the 1974 Trade Act, the investigation will examine whether the actions, policies, and practices of these economies are 'unreasonable or discriminatory' and whether they impose burdens or restrictions on U.S. commerce.

The 16 economies under review are: China, the European Union, Singapore, Switzerland, Norway, Indonesia, Malaysia, Cambodia, Thailand, South Korea, Vietnam, Taiwan, Bangladesh, Mexico, Japan, and India.

Greer highlighted that the probe could lead to new tariffs this summer — around May — targeting major economies including China, the EU, India, Japan, South Korea, and Mexico. The U.S. has previously imposed Section 301 tariffs on a wide range of Chinese products during both the Trump and Biden administrations, with rates ranging from 7.5% to 100%, most commonly 7.5%-25%, alongside 232 tariffs (25%-50%) and 10% Section 122 tariffs.

The USTR has accelerated the investigation timeline with key milestones as follows:

• Investigation launch: March 11, 2026

• Public comments platform opens: March 17, 2026

• Deadline for written comments and hearing requests: April 15, 2026

• Public hearings: May 5–8, 2026

• Deadline for post-hearing rebuttal submissions: Within seven days after the hearings

Additionally, Greer announced that on March 12, 2026, the USTR will launch another Section 301 investigation aimed at prohibiting U.S. imports of goods produced with forced labor, covering more than 60 countries.

Section 301 of the 1974 Trade Act, as amended, is designed to address unfair foreign practices affecting U.S. commerce. Investigations under Section 301(b) review whether foreign actions are unreasonable or discriminatory and whether they create burdens or restrictions for U.S. businesses. After consulting the interagency Section 301 Committee and relevant advisory committees, the USTR has formally initiated these investigations.

Following the launch, the USTR will consult with the governments of the affected economies, including China, the EU, Singapore, Switzerland, Norway, Indonesia, Malaysia, Cambodia, Thailand, South Korea, Vietnam, Taiwan, Bangladesh, Mexico, Japan, and India.