"US Launches Trade Probe Into 16 Economies Including India, Signals Potential New Tariffs", 12 March 2026

The administration of US President Donald Trump has launched a new trade investigation into excess industrial capacity among 16 major trading partners, in a move that could pave the way for fresh tariffs later this year.

The probe...is being conducted under Section 301 of the Trade Act, which allows the United States to investigate and respond to unfair trade practices by foreign governments.

US Trade Representative Jamieson Greer said the investigation would examine whether several economies were contributing to structural overcapacity in global manufacturing through policy measures that distort trade.

Countries under scrutiny include China, the European Union, India, Japan, South Korea and Mexico, along with Taiwan, Vietnam, Thailand, Malaysia, Cambodia, Singapore, Indonesia, Bangladesh, Switzerland and Norway.

Greer stated that the investigation would focus on economies where there was evidence suggesting structural excess capacity in manufacturing sectors. He explained that indicators such as persistent trade surpluses and underutilised production capacity would be examined as part of the probe.

According to Greer, the investigation would also assess a range of policy factors that may contribute to industrial overcapacity. These include government subsidies, suppressed domestic wages, the non-commercial activities of state-owned enterprises, inadequate environmental and labour standards, subsidised lending and currency practices...

Greer indicated that the administration intended to complete the Section 301 investigation and determine potential remedies before the temporary tariffs expire in July.

The investigation is expected to proceed quickly. Public comments will be accepted until 15th April, and a hearing is scheduled to take place around 5th May.

In addition to the industrial capacity probe, the USTR is preparing to launch a separate Section 301 investigation focused on imports produced using forced labour.

Greer said the new investigation...could cover more than 60 countries and would examine whether further restrictions should be imposed on such goods entering the US market...