WHAT’S THE LATEST

Section 301 investigations on March 11 and 12, 2026, targeting overcapacity in manufacturing sectors across 16 key trading partners and forced labor–related import enforcement failures across 60 economies. These actions represent the broadest Section 301 activity since the initial China 301 actions in 2018 and signal a renewed U.S. strategy to reconstruct a long term tariff architecture following the recent termination of IEEPA based tariffs.

Both investigations include near term opportunities for public comments and carry high risk of future increases in duties, including the potential for new, expanded, or country specific tariffs under Section 301.

WHAT WE KNOW

Section 301 Investigation: Structural Excess Capacity & Production

On March 11, 2026, USTR self initiated investigations into acts, policies, and practices related to structural excess capacity and production across the following economies:

  • China
  • European Union
  • Singapore
  • Switzerland
  • Norway
  • Indonesia
  • Malaysia
  • Cambodia

·       Thailand

·       South Korea

·       Vietnam

·       Taiwan

·       Bangladesh

·       Mexico

·       Japan

·       India

USTR notes that these countries’ manufacturing output exceeds domestic demand, resulting in persistent trade surpluses and displacement of U.S. manufacturing investment. Key sectors called out include (but are not limited to):

  • Steel
  • Aluminum
  • Batteries
  • Automobiles
  • Semiconductors
  • Chemicals
  • Plastics

·       Electronics

·       Machinery

·       Glass

·       Cement

·       Solar modules

·       Robotics

·       Transportation equipment

Public Comment Opportunity:

  • Docket opens: March 17, 2026
  • Comments & requests to testify due: April 15, 2026
  • Hearing dates: May 5–8, 2026

Risk Assessment: Increased Tariff Exposure

  • If USTR determines these practices are unreasonable or discriminatory, the U.S. may impose:
  • Additional Section 301 duties (potentially mirroring or exceeding prior China tariffs)
  • Sector specific or country specific measures
  • Non tariff trade remedies impacting supply chains

Given the breadth of economies and sectors involved, importers should expect elevated tariff risk across wide product categories, particularly where global oversupply is prevalent.

Section 301 Investigation: Forced Labor–Related Import Failures

On March 12, 2026, USTR launched a separate set of Section 301(b) investigations into 60 countries, examining whether governments have failed to impose and effectively enforce bans on the importation of goods produced with forced labor. The list includes major U.S. trading partners such as: 

  • Australia
  • Canada
  • EU member states
  • UK
  • India
  • Japan
  • South Korea
  • Mexico
  • Qatar

·       Qatar

·       Saudi Arabia

·       Israel

·       China

·       Russia

·       Vietnam

·       Brazil

·       Switzerland

·       And many others

 

USTR emphasizes that inadequate forced labor enforcement may grant foreign producers artificial cost advantages, harming U.S. businesses, workers, and compliant importers.

Public Comment Opportunity:

  • Comments & hearing requests due: April 15, 2026
  • Public hearing begins: April 28, 2026

Risk Assessment: Potential New Forced Labor Tariff Measures

USTR may pursue:

  • New Section 301 duties on goods from any of the 60 economies
  • Enhanced enforcement aligned with the Uyghur Forced Labor Prevention Act (UFLPA) or various Withhold Release Orders (WROs)
  • Broad supply chain due diligence requirements

Given the scale of the probe, even industries without current forced labor flags may see increased compliance scrutiny or tariff exposure.

SEKO’S GUIDANCE

We recommend that importers:

  • Continue to plan and forecast for additional tariff uncertainty. 
  • Consider duty mitigation options
  • For companies interested in making public comments, ensure deadlines are closely monitored. 

SEKO will continue to provide timely updates as more information becomes available.

SEKO’s trade and compliance experts are available to help assess impacts, review classifications, and map out mitigation strategies. Please contact your SEKO representative directly or email us at hello@sekologistics.com.