Highlights:
- The US launched an investigation under Section 301 of the Trade Act of 1974.
- India, China, Japan, and the European Union are among the economies under review.
- The US probe focuses on excess manufacturing capacity and global overproduction.
- US officials say some foreign policies may harm US manufacturing and investment.
- Public comments will open on March 17, 2026, with hearings scheduled for May 5, 2026.
The United States has opened a broad investigation into the trade practices of several major global economies, including India, China, Japan, and the European Union. The probe will assess whether policies in these economies contribute to excess manufacturing capacity and create unfair conditions that may harm US industries and supply chains.
The investigation was announced by United States Trade Representative Jamieson Greer and is being conducted under Section 301(b) of the Trade Act of 1974, a law that allows the US government to examine foreign trade practices that may burden or restrict American commerce.
US probe into trade practices targets excess manufacturing capacity
The US probe into trade practices will review the “acts, policies, and practices” of several trading partners, particularly in manufacturing sectors where production levels may exceed domestic demand.
Apart from India, China, Japan, and the European Union, the investigation will also review the trade practices of Bangladesh, Cambodia, Indonesia, Korea, Malaysia, Mexico, Norway, Singapore, Switzerland, Taiwan, Thailand, and Vietnam.
Officials from the US Trade Representative’s office said the inquiry will examine industries where foreign production capacity is significantly higher than what local markets can absorb. When domestic demand is limited, these economies may export large quantities of goods to international markets, including the United States.
According to US officials, this pattern of global overproduction can influence competition in international markets and affect American manufacturing sectors.
US trade investigation focuses on impact on domestic manufacturing
Jamieson Greer said the US investigation into trade practices will examine whether excess production in other economies is affecting domestic manufacturing in the United States.
Greer said that when other countries produce more goods than their domestic markets require, those products are often exported abroad, including to the US. This situation can affect American industries by increasing competition with imported goods.
He said such circumstances may discourage investment in American factories or reduce the ability of US companies to expand production.
“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,” Greer said in a statement.
US officials say the investigation will evaluate whether certain foreign government policies contribute to structural overcapacity in key manufacturing sectors.
US investigation under Section 301 of the Trade Act
The US investigation into trade practices is being carried out under Section 301 of the Trade Act of 1974, a provision designed to address trade practices considered “unjustifiable, unreasonable, or discriminatory” if they place a burden on US commerce.
Under Section 302(b) of the law, the US Trade Representative has the authority to start an investigation after consulting government agencies and advisory committees.
Greer said the decision to begin the probe followed recommendations from the inter-agency Section 301 Committee and consultations with relevant advisory groups.
US consultations with trading partners
As part of the investigation process, the United States has requested consultations with governments and regions included in the probe.
These consultations involve China, the European Union, India, Japan, Singapore, Switzerland, Norway, Indonesia, Malaysia, Cambodia, Thailand, Korea, Vietnam, Taiwan, Bangladesh, and Mexico.
US officials say the discussions are intended to gather information about trade policies and manufacturing practices in these economies.
The consultations are part of the standard process under Section 301 investigations, which often involve government discussions before any policy decisions are made.
US public comment process and hearings
The US Trade Representative’s office will open a public comment docket on March 17, 2026 as part of the investigation.
Businesses, industry groups, experts, and other stakeholders will be able to submit written comments about the trade practices under review and their impact on US industries.
Public hearings related to the probe are scheduled to begin on May 5, 2026. These hearings will allow officials to collect additional information from companies, trade organizations, and other interested parties.
The feedback gathered during this process will help US authorities determine whether further action under US trade law is warranted.
