The Office of the United States Trade Representative (USTR) has launched two new investigations under Section 301 of the Trade Act of 1974, targeting global manufacturing overcapacity and forced labor practices.
The investigations, initiated this week, could lead to tariffs, import restrictions or other trade remedies.
The first probe will examine structural overcapacity in manufacturing sectors across 18 economies, including China, the European Union, Japan, India, Mexico and Vietnam. The USTR will assess whether government policies that promote excess production are distorting international competition and harming US industries.
Key sectors under review include automobiles, machinery, steel and non-ferrous metals.
According to US Trade Representative Jamieson Greer, the investigation aims to address the impact of overproduction by foreign economies that displaces US manufacturing and discourages domestic investment.
A second Section 301 investigation covering 60 economies will focus on whether governments have failed to effectively enforce bans on imports produced with forced labor, potentially restricting US commerce.
Industry groups including the Alliance for American Manufacturing and the United Steelworkers union welcomed the move, saying that global overcapacity—particularly in steel and aluminum—has damaged US industries and jobs.
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