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USTR Fast-Tracks Dual Section 301 Probes on Excess Capacity and Forced‑Labor Enforcement

The expedited investigations function as the administration’s Plan B after the Supreme Court voided IEEPA tariffs, positioning potential remedies to succeed the temporary Section 122 surcharge set to lapse in July.

Overview

  • USTR opened two multi‑country Section 301 investigations, one into structural manufacturing overcapacity in 16 economies and another into failures to prohibit or enforce imports made with forced labor across 60 economies.
  • Written comments in both dockets are due April 15, 2026, with public hearings set for April 28–May 1 (forced labor) and May 5–8 (excess capacity).
  • The excess‑capacity inquiry spans sectors such as steel, aluminum, autos, batteries, semiconductors, solar modules, ships, chemicals, and machinery, assessing whether government policies drive actionable overproduction.
  • The forced‑labor inquiry examines whether trading partners maintain and effectively enforce import bans on goods made with forced labor, with potential outcomes that could include tariffs or import restrictions if USTR makes affirmative findings.
  • No new Section 301 tariffs have been imposed to date, but the accelerated timetable signals an effort to finalize determinations before the temporary global surcharge under Section 122 expires in late July, prompting businesses to map supply‑chain exposure and consider filing comments.