- The US launched investigations under Section 301 of the Trade Act of 1974.
- India, China, Japan, and the EU are among the economies under review.
- The probe focuses on excess manufacturing capacity and overproduction.
- US officials say foreign policies may be hurting American manufacturing.
- Public comments will open March 17, with hearings starting May 5, 2026.
The United States has launched a new investigation into the trade practices of several global economies, including India, China, Japan, and the European Union. The probe aims to determine whether certain policies in these countries create unfair conditions that negatively affect American manufacturing.
United States Trade Representative Jamieson Greer announced the investigation. It is being conducted under Section 301(b) of the Trade Act of 1974, a law that allows the US government to respond to foreign practices that may harm US commerce.
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.
According to the US Trade Representative’s office, the investigation will examine the “acts, policies, and practices” of these economies, particularly in manufacturing sectors where production capacity may be higher than domestic demand.
Greer said that in many industries, some trading partners are producing more goods than their local markets can absorb. As a result, these countries export large volumes of products to other markets, including the United States.
He said this situation can affect American industries by displacing domestic production or discouraging investment in US manufacturing. According to Greer, such conditions may prevent American companies from expanding their production capacity.
“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.
The move reflects the broader economic agenda of President Donald Trump, whose administration has emphasized rebuilding the country’s industrial base and bringing critical supply chains back to the United States.
US officials say the government’s efforts to strengthen domestic manufacturing are facing challenges from what they describe as structural overcapacity in other economies.
In several sectors, American officials believe the US has already lost significant domestic production capacity or fallen behind international competitors. The investigation aims to determine whether foreign government policies contribute to these trends.
Section 301 of the Trade Act is designed to address trade practices that are considered “unjustifiable, unreasonable, or discriminatory” and that place a burden on US commerce.
Under Section 302(b) of the law, the US Trade Representative can start an investigation on its own after consulting with government agencies and advisory committees. Greer said he began the probe after reviewing recommendations from the inter-agency Section 301 Committee and consulting with relevant advisory groups.
As part of the process, the US government will seek consultations with the governments involved. The US has already requested discussions with countries and regions, including China, the European Union, India, Japan, Singapore, Switzerland, Norway, Indonesia, Malaysia, Cambodia, Thailand, Korea, Vietnam, Taiwan, Bangladesh, and Mexico.
The US Trade Representative’s office will also open a public comment docket on March 17, 2026. Businesses, experts, and other stakeholders will be able to submit their views about the investigation.
In addition, public hearings related to the probe are scheduled to begin on May 5, 2026. These hearings will help officials gather information before deciding whether to take any action under US trade law.
