Insights

On March 11, 2026, the Office of the United States Trade Representative (“USTR”) announced the initiation of a new set of investigations under Section 301 of the Trade Act of 1974 focused on the acts, policies, and practices of certain foreign economies relating to structural excess capacity and production in manufacturing sectors. As described in the USTR’s Federal Register Notice (the “FRN”), the investigations will examine whether those acts, policies, and practices are unreasonable or discriminatory and burden or restrict U.S. commerce. The FRN identifies the following economies as the focus of the investigations: China, the European Union (“EU”), Singapore, Switzerland, Norway, Indonesia, Malaysia, Cambodia, Thailand, Korea, Vietnam, Taiwan, Bangladesh, Mexico, Japan, and India.

The USTR states that a number of trading partners have developed production capacity that is “untethered” from domestic and global demand, resulting in overproduction, persistent surpluses, and underutilized capacity that can displace U.S. production and deter investment in domestic manufacturing. The FRN includes a wide range of illustrative sectors that are listed as affected by excess capacity and production, including aluminum, automobiles, batteries, cement, chemicals, electronics, energy goods, glass, machine tools, machinery, non-ferrous metals, paper, plastics, processed food and beverages, robotics, satellites, semiconductors, ships, solar modules, steel, and transportation equipment. In practical terms, the investigations appear designed to reach well beyond a single industry and instead address perceived systemic production distortions across major manufacturing supply chains.

From a policy perspective, the new investigations underscore the administration’s continued reliance on Section 301 as a central trade-enforcement tool, especially in the wake of the Supreme Court’s decision invalidating tariff actions under the International Emergency Economic Powers Act (“IEEPA”). As indicated in the USTR’s press release, the administration views foreign overproduction as a direct challenge to U.S. reindustrialization, reshoring efforts, and supply-chain resilience. If the USTR ultimately makes an affirmative determination, Section 301 provides a pathway for the agency to impose additional tariffs on the countries identified in the FRN.

Interested parties should pay close attention to the public comment process. Dockets for the submission of written comments and requests to appear at the public hearing open on March 17, 2026. To be assured of consideration, written comments and requests to appear must be submitted by April 15, 2026, at 11:59 p.m. EST. The Section 301 Committee is scheduled to begin public hearings on May 5, 2026. For manufacturers, importers, and companies with supply-chain exposure to the identified economies or sectors, the public comment process offers a key opportunity to provide input that may help shape the administrative record on these topics.

USTR has outlined several specific areas where it is seeking input. Commenters should consider addressing the following points:

1. Acts, Policies, and Practices Creating Structural Excess Capacity

• Identify the specific acts, policies, or practices of the investigated economy.
• Explain how these measures contribute to structural excess capacity or overproduction in the relevant sector(s).
• Provide data or examples where possible.

2. Whether the Practices Are Unreasonable or Discriminatory

• Assess whether the identified measures are unreasonable, unjustifiable, or discriminatory under U.S. trade law.
• Describe how these practices deviate from international norms or obligations.

3. Burden or Restriction on U.S. Commerce

• Explain how U.S. companies, workers, or supply chains are/are not harmed.
• Describe the nature and magnitude of the burden or restriction.
• Include economic assessments, such as:
  • lost sales or market share
  • price distortions
  • supply chain disruptions
  • competitive disadvantages

4. Whether the Practices Are Actionable Under Section 301(b)

• Provide views on whether the conduct meets the statutory criteria for action under Section 301(b).
• Recommend what actions, if any, USTR should take, including:
  • tariff measures
  • non‑tariff remedies
  • alternative enforcement tools

5. Additional Considerations for Assessing Structural Excess Capacity

• Identify any broader market dynamics or policy factors that USTR should consider.
• Highlight cross‑sector spillovers, global supply chain effects, or long‑term competitive impacts.
• Suggest analytical frameworks or data sources that could improve USTR’s assessment.

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The attorneys at Torres Trade Law, PLLC are experienced in assisting clients with submission of public comments regarding various agency investigations, including under Section 301 of the Trade Act of 1974. If you have questions about the public comment process or about preparation of a public comment submission, please feel free to reach out to our attorneys for assistance.