THE US ARGUES THAT ITS TRADING PARTNERS HAVE DEVELOPED PRODUCTION CAPACITY THAT IS NOT TIED TO DOMESTIC OR GLOBAL DEMAND INCENTIVES. The US argues that its trading partners have developed production capacity that is not tied to domestic or global demand incentives. They argue that this excess capacity generates:

• Massive or persistent overproduction and trade surpluses.
• Inefficient use of industrial capacity.
• A displacement of U.S. domestic production and a lack of investment in its own factories.

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Sectors under scrutiny

USTR has identified a set of sectors that it considers “plagued by overcapacity and overproduction” globally.

Within the investigation, USTR singles out the EU and specific member states for leading trade surpluses in particular categories:

• European Union (in general): The main exports of chemicals and related products, machinery and vehicles are being investigated.
• Germany: Noted for its exports in Automobiles and auto parts, Machinery, Electronic equipment, Pharmaceuticals, Chemicals.

The USTR includes in its “illustrative list” of sectors affected by overcapacity the following specific concepts:

• Machine tools: Identified as a sector globally “plagued” by overproduction.
• General machinery: Cited as one of the main drivers of the trade surplus of the European Union, Germany, Switzerland and Norway.
• Robotics: Mentioned as a critical sector where the U.S. believes it has lost capacity to foreign competitors.
• Transportation equipment: Includes heavy machinery, railroad equipment, ships, vessels and boats.

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The ultimate goal: New Tariffs

This action is seen as the Trump administration’s “Plan B” to rebuild its “tariff wall” after Supreme Court decisions invalidated previous global tariffs. Section 301 investigations are the legal prerequisite for the U.S. President to unilaterally impose tariffs on countries he deems to be employing unfair trade practices.

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Calendar of actions

• March 17, 2026: Dockets are opened for written public comment.
• April 15, 2026: Deadline to submit comments and request to appear at the public hearings.
• May 5, 2026: Start of public hearings in Washington D.C.

Jamieson Greer, U.S. Trade Representative, has indicated that the intention is to conclude these investigations quickly so that the new duties can replace the current ones before they expire. They are invited to participate in this process to argue whether their practices are reasonable or whether they believe they do not restrict U.S. trade.