USA investigates China, EU, Others for overproducing goods

March 12, 2026 (MLN): The United States has initiated investigations into the manufacturing practices of several major economies, including China, the European Union, Japan, India, and Mexico, under Section 301(b) of the Trade Act of 1974.

The probes are intended to determine whether structural excess capacity and overproduction abroad are unfairly burdening or restricting U.S. commerce.

The investigations, led by U.S. Trade Representative Jamieson Greer and guided by the policies of President Trump, reflect the administration’s focus on reshoring critical supply chains and strengthening domestic manufacturing, according to a press release issued by Office of the United States Trade Representative.

They target foreign economies producing more goods than they can consume domestically, a practice that can displace U.S. production or limit investment and expansion in domestic manufacturing.

USTR officials note that many U.S. industries have lost substantial capacity or fallen behind international competitors due to these practices.

Section 301 of the Trade Act allows the U.S. to respond to unjustifiable, unreasonable, or discriminatory foreign practices affecting commerce.

Following standard procedure, Ambassador Greer will consult with the governments of the affected economies and has opened a public comment docket starting March 17, 2026.

The economies under investigation include China, the European Union, Singapore, Switzerland, Norway, Indonesia, Malaysia, Cambodia, Thailand, Korea, Vietnam, Taiwan, Bangladesh, Mexico, Japan, and India.

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