Executive summary

The United States Trade Representative (USTR) announced on 11 March 2026 that it has initiated investigations under Section 301 of the Trade Act of 1974 into acts, policies and practices of 16 economies (China, the European Union, Singapore, Switzerland, Norway, Indonesia, Malaysia, Cambodia, Thailand, Korea, Vietnam, Taiwan, Bangladesh, Mexico, Japan and India) related to structural excess capacity and production in manufacturing sectors.

The United States (US) government may, depending on the outcome of the investigation, impose tariff or nontariff measures targeting products of the subject economies to address any identified burdens on US commerce.

The USTR will open the comment period on 17 March 2026; written comments and requests to appear at hearings are due by 15 April 2026 at 11:59 p.m. ET; public hearings begin 5 May 2026 and may continue through 8 May 2026.

Written comments should be submitted to docket USTR-2026–0067 and requests to appear (with a summary of testimony) to docket USTR-2026–0068 via https://comments.ustr.gov/s/.

Background

Following the US Supreme Court's ruling in Learning Resources, Inc., et al. v. Trump,the Administration announced plans to quickly implement alternative legal tools for imposing tariffs, including initiation of several investigations under Section 301 of the Trade Act of 1974. (For more on the Supreme Court's decision, see EY Global Tax Alert, US Supreme Court rules IEEPA does not authorize presidents to impose tariffs, dated 20 February 2026.)

The USTR has now announced that it has opened Section 301 investigations into "structural excess capacity" and production in manufacturing sectors. The notice describes excess capacity as "under-utilized industrial production capacity that is sustained through government interventions or policies incentivizing companies to maintain or grow their unused capacity efficiently." Globally, the USTR suggests manufacturing output continues to grow yet estimated capacity utilization remains low, indicating supply outstrips demand in many sectors. Furthermore, the USTR states that large or persistent trade surpluses and underutilized or unused capacity in certain economies can hamper US production and deter new US investment, displacing existing or prospective US manufacturing. The notice cites examples across numerous sectors (e.g., steel, autos, batteries, chemicals, electronics, energy goods, machinery, semiconductors, ships, solar modules, aluminum, paper, plastics, food and beverages, and transportation equipment) and describes policy interventions that may contribute to excess capacity.

Investigated economies and scope

The investigation's focus is on economies that appear to exhibit structural excess capacity and production through large or persistent trade surpluses or underutilized/unused capacity: China, the European Union, Singapore, Switzerland, Norway, Indonesia, Malaysia, Cambodia, Thailand, Korea, Vietnam, Taiwan, Bangladesh, Mexico, Japan and India. Pursuant to the Trade Act, the USTR has consulted advisory committees and the inter-agency Section 301 Committee and will seek consultations with the respective governments. Following the investigations, the USTR will determine whether the acts, policies or practices are actionable under Section 301.

What this means for businesses

These investigations could lead to tariff or nontariff actions targeting products from the listed economies in sectors where the USTR finds structural excess capacity or production burdens US commerce. Companies with exposure to the covered economies and sectors should evaluate potential impacts on supply chains, pricing and sourcing and consider submitting evidence-based comments and testimony. Data demonstrating how specific acts or practices burden US operations, investment or employment will be particularly relevant, as will sector-specific capacity utilization, profitability and trade-flow evidence.

Request for public comments

The USTR invites written comments on:

• The acts, policies and practices creating or maintaining structural excess capacity or production in specific sectors for each investigated economy
• Whether such acts, policies and practices are unreasonable or discriminatory
• Whether they burden or restrict US commerce, including the nature and level of the burden (economic assessments encouraged)
• Whether they are actionable under Section 301(b) and what actions, if any, should be taken, including tariff and nontariff measures
• Any additional considerations for assessing acts, policies, and practices that contribute to structural excess capacity or production in manufacturing sectors

Key dates

• 11 March 2026: Investigations initiated
• 17 March 2026: Dockets open for written comments and hearing appearance requests
• 15 April 2026 at 11:59 p.m. ET: Deadline to submit written comments and requests to appear (with a summary of testimony)
• 5 May 2026 at 10:00 a.m. ET: Public hearings at the US International Trade Commission, 500 E Street SW, Washington, DC 20436
• Seven calendar days after the last hearing day: Deadline for post-hearing rebuttal comments

To testify, submit a request to appear via the portal by 15 April 2026, indicating the relevant investigation(s) and including a summary of testimony; remarks will be limited to five minutes to allow time for questions from the Section 301 Committee. Post-hearing rebuttal comments must be filed within seven days after the last day of the hearing and should be limited to rebutting or supplementing hearing testimony. All submissions must be in English.

Comment submission

Comments must be submitted through the USTR portal: https://comments.ustr.gov/s/.

Identification and contact information must be provided; third-party filers (e.g., law firms, trade associations, customs brokers) should identify the full legal name of the organization represented and the primary point of contact. The notice states that the USTR "may not consider [submissions] if insufficient information is provided."

Pages containing business confidential information (BCI) must be clearly marked as "BUSINESS CONFIDENTIAL" and bracketed or highlighted. Include a written certification that the information would not customarily be released to the public and submit a public version of any BCI submission.

The USTR will post attachments to the docket for public inspection, except for properly designated BCI.

Actions to consider

Actions for businesses to consider taking, depending on their specific situations, include:

• Map exposure to the 16 investigated economies and affected manufacturing sectors; identify products and Harmonized Tariff Schedule of the United States (HTSUS) classifications most at risk from potential actions.
• Develop and submit written comments by 15 April 2026, addressing issues the USTR identified and quantifying any burdens on US commerce.
• Decide whether to request a hearing slot and prepare a concise five-minute testimony with a clear summary; plan to file post-hearing rebuttal comments within seven days of the last hearing day if warranted.
• Prepare both public and BCI versions of submissions; follow the portal formatting and certification requirements and designate a primary point of contact for each filing.
• Monitor the dockets beginning 17 March 2026 for additional instructions and schedule updates; coordinate internal and external stakeholders (trade compliance, legal, government relations, finance and operations).