The United States launched Section 301 investigations into the trade practices of 16 major economies, including the European Union, China, and Mexico, focusing on structural excess capacity and overproduction in key manufacturing sectors.

U.S. Trade Representative Jamieson Greer announced the probes on March 11, 2026. The investigations examine whether policies in these economies create excess production that displaces American manufacturing and hinders reshoring efforts. Affected sectors include aluminum, automobiles, batteries, cement, chemicals, electronics, steel, and semiconductors.

The full list of targeted economies comprises China, the European Union, Singapore, Switzerland, Norway, Indonesia, Malaysia, Cambodia, Thailand, South Korea, Vietnam, Taiwan, Bangladesh, Mexico, Japan, and India. USTR cited evidence such as large trade surpluses and low capacity utilization rates. For instance, China recorded a global goods trade surplus exceeding $1.2 trillion in 2025 and a $361 billion bilateral surplus with the U.S. in 2024. The EU posted a $451 billion global surplus in 2024, while Mexico ran a $197 billion bilateral surplus with the U.S. in 2025, driven by automobiles and steel.

These probes fall under Section 301 of the Trade Act of 1974, which allows the U.S. to respond to unreasonable or discriminatory foreign practices burdening American commerce. If violations are found, USTR could impose tariffs or other measures. The move aligns with President Trump's agenda to protect U.S. industries and create jobs.

Public input is open through April 15, 2026, via the USTR portal. Hearings are scheduled for May 5 to 8 at the U.S. International Trade Commission in Washington. Greer emphasized, “The United States will no longer sacrifice its industrial base to other countries that may be exporting their problems with excess capacity and production to us.” He added that the investigations underscore Trump's commitment to reshoring supply chains.

A separate set of 60 Section 301 probes launched on March 12 targets failures to enforce forced labor import bans, though the EU, China, and Mexico feature prominently in the excess capacity case.

China responded swiftly, launching two reciprocal trade barrier investigations on March 27 into U.S. practices disrupting global supply chains and green product trade. Beijing described the moves as defensive ahead of a potential Trump visit in May.

The investigations come amid ongoing U.S. efforts to counter foreign competition following legal challenges to prior tariff actions. Industry groups have welcomed the steps as vital to bolstering American manufacturing.