U.S. Trade Representative Jamieson Greer said the probes will examine structural excess capacity and manufacturing overproduction that Washington argues contribute to large and persistent trade imbalances with the United States.
BY PC Bureau
March 12, 2026: The Trump administration has launched new investigations into alleged unfair trade practices under Section 301 of the Trade Act of 1974, targeting 16 major trading partners. The move is intended to restore tariff leverage after a major legal setback last month.
On February 20, 2026, the U.S. Supreme Court ruled 6–3 that sweeping global tariffs imposed by Donald Trump under the International Emergency Economic Powers Act exceeded presidential authority and were therefore illegal.
In response, the administration quickly imposed a temporary 10% tariff on imports for 150 days using Section 122 of the Trade Act of 1974, a stopgap measure scheduled to expire in July 2026. The new Section 301 investigations are designed to provide a more durable legal path for targeted tariffs or other trade remedies.
Jamieson Greer, the U.S. Trade Representative, announced the actions during a press call on March 11, 2026. The main investigation will examine structural excess capacity and overproduction in manufacturing sectors across the 16 economies.
Greer said the targeted partners appear to exhibit practices such as persistent trade surpluses with the United States, government-backed overproduction, or unused industrial capacity, all of which he said harm American manufacturers and contribute to the U.S. trade deficit.
The investigations could lead to new tariffs as early as summer 2026 on key trading partners including China, the European Union, India, Japan, South Korea, and Mexico.
Other economies included in the probe are Taiwan, Vietnam, Thailand, Malaysia, Cambodia, Singapore, Indonesia, Bangladesh, Switzerland, and Norway.
.@USTradeRep 🚨New-Tariffs – India & Others— USTR announced the initiation of investigations regarding the acts, policies, and practices of various economies under Section 301(b) of the Trade Act of 1974 relating to structural excess capacity and production in manufacturing… pic.twitter.com/z4J7OF1TFY
— Rohit Sharma 🇺🇸🇮🇳 (@DcWalaDesi) March 12, 2026
Notably, Canada—the United States’ second-largest trading partner—was not included in this particular excess-capacity investigation.
Public comments will be accepted until April 15, 2026, with a public hearing expected around May 5. The administration hopes to complete the investigations and outline potential remedies before the temporary tariffs expire in July.
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Forced Labor Probe
In a separate but related move, Greer also announced a new Section 301 investigation into goods produced with forced labor, which could lead to import bans affecting more than 60 countries.
The probe builds on earlier U.S. measures such as the Uyghur Forced Labor Prevention Act, signed under former President Joe Biden. The law already restricts imports linked to alleged forced labor in China’s Xinjiang region, particularly in sectors like solar panels and textiles.
Washington has accused Chinese authorities of operating labor programs targeting Uyghur and other Muslim minorities, allegations that China strongly denies.
Greer said the United States hopes other nations will adopt similar restrictions on goods linked to forced labor, noting that U.S. trade law has long allowed such enforcement.
Broader Trade Strategy
The investigations form part of the Trump administration’s broader strategy to counter unfair trade practices, reduce the U.S. trade deficit, and protect domestic manufacturing.
Greer said that while some bilateral agreements may offer limited protections, no trading partner would automatically be exempt from future Section 301 actions.
“He’ll find a way to deal with unfair trading practices. He’ll find a way to get our trade deficit down. He’ll find a way to protect U.S. manufacturing,” Greer said, referring to Trump. “We have a lot of tools to do it.”
The countries under the excess-capacity probe collectively account for some of the largest U.S. goods trade deficits, with significant gaps recorded in trade with China, the European Union, Mexico, Vietnam, and Taiwan, according to data from the U.S. Census Bureau.
The new investigations signal a renewed push by Washington for “reciprocal and balanced trade,” a strategy that could have far-reaching consequences for global supply chains, manufacturing networks, and international trade relations in 2026.
Here is the list of the 16 entities under the U.S. excess capacity Section 301 probe, along with U.S. goods trade surplus/deficit data (in millions of USD) from the U.S. Census Bureau:
┌─────────────────┬───────────────────────────────┬───────────────────────────────┬────────────────┐
│ Country/Area │ Goods Trade Surplus/Deficit │ Goods Trade Surplus/Deficit │ Change │
│ │ 2024 ($ mln) │ 2025 ($ mln) │ ($ mln) │
├─────────────────┼───────────────────────────────┼───────────────────────────────┼────────────────┤
│ European Union │ 218,750 │ 235,874 │ -17,124 │
│ China │ 202,071 │ 295,515 │ -93,444 │
│ Mexico │ 196,913 │ 171,491 │ 25,422 │
│ Vietnam │ 178,183 │ 123,457 │ 54,726 │
│ Taiwan │ 146,756 │ 73,718 │ 73,038 │
│ Thailand │ 71,856 │ 45,492 │ 26,364 │
│ Japan │ 63,883 │ 69,392 │ -5,509 │
│ India │ 58,216 │ 45,801 │ 12,415 │
│ South Korea │ 56,416 │ 65,967 │ -9,551 │
│ Switzerland │ 34,304 │ 38,283 │ -3,979 │
│ Malaysia │ 30,791 │ 24,854 │ 5,937 │
│ Indonesia │ 23,716 │ 17,893 │ 5,823 │
│ Cambodia │ 14,928 │ 12,327 │ 2,601 │
│ Bangladesh │ 7,146 │ 6,063 │ 1,083 │
│ Norway │ 2,069 │ 2,043 │ 26 │
│ Singapore │ -3,553 │ -1,855 │ -1,698 │
└─────────────────┴───────────────────────────────┴───────────────────────────────┴────────────────┘Notes:
- Positive values indicate a U.S. trade deficit with that partner (they export more goods to the U.S. than the U.S. exports to them).
- Negative values indicate a U.S. trade surplus.
- Data reflects goods trade only (services excluded).
- The large increase in the U.S. deficit with China (from $202B to nearly $296B) stands out as the most significant shift among the listed partners.
