USTR Launches Section 301 Investigations Targeting Global Manufacturing Overcapacity

The Office of the U.S. Trade Representative (USTR) has initiated a new set of Section 301 investigations examining whether trade practices in 16 economies are contributing to excess manufacturing capacity that harms U.S. industries. Announced March 11 and published in the Federal Register on March 17, 2026, the investigations cover a broad group of trading partners, including China, the European Union, Japan, India, Mexico, and several Southeast Asian economies.

USTR said it will assess whether government policies, such as subsidies, state financing, market barriers, or weak labor and environmental standards, are driving overproduction in key sectors and distorting global markets. The review is expected to focus on industries such as steel, aluminum, autos, semiconductors, machinery, and clean energy technologies, where global capacity has expanded significantly in recent years.

The agency is now seeking public input, with comments and requests to testify due by April 15, 2026, and hearings scheduled to begin May 5. If USTR ultimately makes affirmative findings, Section 301 gives the administration authority to impose tariff or non-tariff remedies.