Trump launches new trade probe targeting 16 nations, including China, India, EU, after tariff setback
Other countries covered by the investigation include Taiwan, Vietnam, Thailand, Malaysia, Cambodia, Singapore, Indonesia, Bangladesh, Switzerland and Norway
- Mar 12, 2026,
- Updated Mar 12, 2026 8:03 AM IST
The Trump administration has opened a sweeping trade investigation into alleged excess industrial capacity across 16 major trading partners, signalling a renewed push to impose tariffs after the US Supreme Court struck down a central element of President Donald Trump’s tariff programme last month.
The probe, announced on Wednesday by US Trade Representative Jamieson Greer, will be conducted under Section 301 of the Trade Act of 1974 and could result in new tariffs targeting several major economies, including China, the European Union, India, Japan, South Korea and Mexico, according to a report by Reuters.
Other countries covered by the investigation include Taiwan, Vietnam, Thailand, Malaysia, Cambodia, Singapore, Indonesia, Bangladesh, Switzerland and Norway.
Focus on excess manufacturing capacity
Greer said the investigation would examine economies where industrial output appears to exceed actual market demand, raising concerns that surplus production could be distorting global trade.
“These investigations will focus on economies that we have evidence appear to exhibit structural excess capacity and production in various manufacturing sectors, such as through larger persistent trade surpluses or underutilised or unused capacity,” he told reporters during a conference call.
US officials believe that in some countries, heavily supported industries may be producing more goods than global markets require, potentially flooding international markets with low-priced exports.
Tariff strategy after the Supreme Court ruling
The move comes shortly after the US Supreme Court dismantled a key pillar of Trump’s global tariff strategy, forcing the administration to seek alternative legal mechanisms to sustain trade pressure on partners it accuses of unfair practices.
Greer said the administration hopes to complete the investigation by the summer, before temporary tariffs introduced in February expire in July.
If the findings support Washington’s concerns, new tariffs could be introduced as part of the remedies under the Section 301 process.
Forced labour probe also planned
Alongside the excess capacity investigation, Greer also announced that the administration plans to open a separate Section 301 investigation into goods produced using forced labour, potentially covering more than 60 countries.
The move could expand existing restrictions under the Uyghur Forced Labor Protection Act, which already targets imports connected to China’s Xinjiang region.
“President Trump is determined to pursue tariffs and will find a way to deal with unfair trading practices,” Greer said.
“He’ll find a way to get our trade deficit down and protect US manufacturing. We have a lot of tools to do it.”
Timeline and trade diplomacy
Public comments on the excess capacity investigation will be accepted until April 15, with a formal hearing expected in early May.
The investigation also comes at a sensitive moment in global trade diplomacy, as US officials prepare for trade talks with Chinese counterparts in Paris ahead of a possible meeting between President Trump and Chinese President Xi Jinping later this month.
The Trump administration has opened a sweeping trade investigation into alleged excess industrial capacity across 16 major trading partners, signalling a renewed push to impose tariffs after the US Supreme Court struck down a central element of President Donald Trump’s tariff programme last month.
The probe, announced on Wednesday by US Trade Representative Jamieson Greer, will be conducted under Section 301 of the Trade Act of 1974 and could result in new tariffs targeting several major economies, including China, the European Union, India, Japan, South Korea and Mexico, according to a report by Reuters.
Other countries covered by the investigation include Taiwan, Vietnam, Thailand, Malaysia, Cambodia, Singapore, Indonesia, Bangladesh, Switzerland and Norway.
Focus on excess manufacturing capacity
Greer said the investigation would examine economies where industrial output appears to exceed actual market demand, raising concerns that surplus production could be distorting global trade.
“These investigations will focus on economies that we have evidence appear to exhibit structural excess capacity and production in various manufacturing sectors, such as through larger persistent trade surpluses or underutilised or unused capacity,” he told reporters during a conference call.
US officials believe that in some countries, heavily supported industries may be producing more goods than global markets require, potentially flooding international markets with low-priced exports.
Tariff strategy after the Supreme Court ruling
The move comes shortly after the US Supreme Court dismantled a key pillar of Trump’s global tariff strategy, forcing the administration to seek alternative legal mechanisms to sustain trade pressure on partners it accuses of unfair practices.
Greer said the administration hopes to complete the investigation by the summer, before temporary tariffs introduced in February expire in July.
If the findings support Washington’s concerns, new tariffs could be introduced as part of the remedies under the Section 301 process.
Forced labour probe also planned
Alongside the excess capacity investigation, Greer also announced that the administration plans to open a separate Section 301 investigation into goods produced using forced labour, potentially covering more than 60 countries.
The move could expand existing restrictions under the Uyghur Forced Labor Protection Act, which already targets imports connected to China’s Xinjiang region.
“President Trump is determined to pursue tariffs and will find a way to deal with unfair trading practices,” Greer said.
“He’ll find a way to get our trade deficit down and protect US manufacturing. We have a lot of tools to do it.”
Timeline and trade diplomacy
Public comments on the excess capacity investigation will be accepted until April 15, with a formal hearing expected in early May.
The investigation also comes at a sensitive moment in global trade diplomacy, as US officials prepare for trade talks with Chinese counterparts in Paris ahead of a possible meeting between President Trump and Chinese President Xi Jinping later this month.