US launches Section 301 tariff probe concentrating on China, EU, Mexico, Japan and others

The U.S. has launched sweeping Section 301 probes into manufacturing overcapacity across 16 trading partners, opening the door to a new wave of tariffs.

Summary:

• The U.S. has launched a Section 301 investigation into 16 trading partners over excess manufacturing capacity.

• Targeted economies include China, the EU, Japan, India, Mexico, Vietnam and Taiwan.

• The probe could lead to new tariffs if unfair trade practices are confirmed.

• The investigation comes after courts struck down elements of Trump’s earlier tariff programme.

• Section 301 gives the U.S. president authority to impose trade penalties after an investigation.

• A second Section 301 probe into goods linked to forced labour could launch soon and may cover around 60 countries.

• The move signals a potential expansion of U.S. tariffs and renewed trade tensions globally.

The United States has launched a new trade investigation that could pave the way for fresh tariffs on a wide range of imports, as President Donald Trump’s administration seeks alternative legal avenues after earlier tariff measures were struck down in court.

U.S. Trade Representative Jamieson Greer announced that Washington has opened a Section 301 investigation into what it described as “structural excess capacity and production” in several manufacturing sectors across 16 major trading partners. The probe will examine whether state-backed overproduction in those economies is distorting global markets and harming American industry.

The countries and jurisdictions targeted by the investigation include China, the European Union, Singapore, Switzerland, Norway, Indonesia, Malaysia, Cambodia, Thailand, South Korea, Vietnam, Taiwan, Bangladesh, Mexico, Japan and India. Officials said the inquiry could ultimately result in the imposition of new tariffs or other trade measures if the investigation concludes that unfair practices are damaging U.S. manufacturers.

The move marks the latest step in the administration’s attempt to revive trade restrictions after a recent court ruling blocked elements of Trump’s earlier tariff programme. By launching a Section 301 probe, the White House is relying on a long-standing provision of U.S. trade law that allows the government to investigate and respond to practices it considers unfair or discriminatory.

Section 301 of the Trade Act of 1974 grants the U.S. president broad authority to impose tariffs or other penalties following an investigation into trade practices that burden American commerce. The same mechanism was used during Trump’s first administration to justify tariffs on hundreds of billions of dollars’ worth of Chinese imports, triggering a prolonged U.S.–China trade conflict.

Officials indicated that the current investigation will focus on manufacturing sectors where global supply has significantly exceeded demand, leading to persistent price pressure and accusations of industrial overcapacity.

The administration also signalled that additional probes are imminent. A separate Section 301 investigation targeting goods produced with forced labour is expected to be launched shortly and could cover roughly 60 countries.

The rapid expansion of trade probes suggests the White House is preparing a broader tariff strategy that could significantly reshape global trade relations. If tariffs ultimately result from the investigations, they could affect supply chains across Asia, Europe and North America and heighten tensions with several major U.S. trading partners.