Overview
On March 11 and 12, the Office of the United States Trade Representative (USTR) initiated new trade investigations under Section 301 of the Trade Act of 1974 (Section 301) into the acts, policies, and practices of 60 trading partners. These investigations cover two topics: 1) structural excess capacity and production in manufacturing sectors; and 2) failure to impose and effectively enforce a prohibition on the importation of goods produced with forced labor. The investigations will determine whether foreign government practices in these areas are "unreasonable" or "discriminatory" and burden or restrict US commerce. Comments and requests to appear at related public hearings are due April 15, 2026.
Background
These investigations are seen as part of the administration's efforts to effectively replicate the International Emergency Economic Powers Act (IEEPA) tariffs that were struck down by the Supreme Court on February 20, 2026. Within hours of the Court's ruling that IEEPA does not authorize the president to impose any tariffs, President Trump announced that he would utilize other trade authorities to reinstate tariffs on most imports—including new Section 301 investigations and the imposition of a temporary 10% global tariff under Section 122 of the Trade Act of 1974.
While Section 301 investigations can take up to a year to complete, the administration will likely move to finish these investigations before the Section 122 tariffs expire on July 24, 2026.
These investigations—and any related future tariffs—may be used by the administration to maintain the framework or final Agreements on Reciprocal Trade (ART) reached with 19 trading partners over the past year. Those agreements were generally in response to the IEEPA reciprocal tariffs, and included reductions in the US reciprocal tariff rate in exchange for market access and purchase and investment commitments by foreign governments. With the reciprocal tariffs struck down, the administration could move to replace them in these agreements with new Section 301 tariffs at similar levels.
Excess Capacity Investigation
The Section 301 investigation related to structural excess capacity and production will cover 16 trading partners: Bangladesh, Cambodia, China, the European Union, India, Indonesia, Japan, Korea, Malaysia, Mexico, Norway, Singapore, Switzerland, Taiwan, Thailand, and Vietnam.
USTR's initiation announcement says that the investigation will focus on "economies that appear to exhibit structural excess capacity and production…such as through large or persistent trade surpluses or underutilized or unused capacity." The purported manufacturing overproduction and overcapacity abroad undermines US efforts to revitalize its manufacturing sector. USTR specifically highlights a number of sectors as being affected by overcapacity and production including aluminum, automobiles, batteries, chemicals, electronics, energy goods, machinery, robotics, semiconductors, ships, solar modules, steel, and transportation equipment.
Notably, many of the listed sectors are also subject to separate sector-specific investigations regarding the national security impacts of imports under Section 232 of the Trade Expansion Act of 1962 (Section 232). For sectors such as aluminum, automobiles, and steel, imports are already subject to significant Section 232 tariffs.
Stakeholder comments and requests to appear at the related public hearing are due 11:59 pm EDT April 15, 2026. The hearing will start May 5, 2026 and continue, as necessary, until May 8, 2026.
Forced Labor Investigation
The Section 301 investigation into select trading partners' alleged failure to impose and effectively enforce a prohibition on the importation of goods produced with forced labor will cover 60 trading partners, including all 16 trading partners that are covered in the other Section 301 investigation into excess capacity. Additional major trading partners named in the investigation include Australia, Brazil, Canada, the Philippines, and the United Kingdom. With the exception of North Macedonia and Liechtenstein, all of the ART trading partners are included in this investigation.
The investigation initiation notice says that US law has long prohibited the importation of goods produced with forced labor, but that other counties have not "adopted and effectively enforced a forced labor import prohibition to date." This allegedly puts US businesses at a disadvantage because foreign competitors have artificially lower costs due to the use of forced labor.
Stakeholder comments and requests to appear at the related public hearing are due 11:59 pm EDT April 15, 2026. The hearing will start on April 28, 2026 and continue, as necessary, until May 1, 2026.
Next Steps
The administration is expected to launch additional Section 301 investigations in the near-term beyond these two investigations. US Trade Representative Jamieson Greer has highlighted potential areas for new investigations including pharmaceutical pricing practices, digital trade discriminatory practices, digital services taxes, ocean pollution, and trade in seafood, rice, and other products. There are also pending Section 301 investigations into China and Brazil, which were launched in 2025.
Steptoe's International Trade team is closely monitoring these investigations and the administration's broader trade policy approach. If you need support evaluating what these announcements mean for your business, our team is ready to assist.
