US launches two trade probes that could trigger new tariffs
Mar 12th 2026
The US Trade Representative launched two Section 301 investigations into global excess industrial capacity and goods made with forced labor, moves that could lead to new tariffs this summer after the Supreme Court curtailed previous tariff authority.
- USTR opened a Section 301 probe into structural excess industrial capacity across multiple economies, including the EU, China, India, Japan, South Korea and Mexico.
- A separate Section 301 probe will examine imports made with forced labor from more than 60 countries and could lead to broader import bans.
- The investigations could result in new tariffs as soon as this summer and may conclude before a temporary 10% tariff expires on July 24.
- The actions follow a Supreme Court ruling that limited the executive branch's authority to impose broad tariffs under emergency powers.
- Canada was excluded from the excess capacity probe and USTR cited EU trade surpluses with Germany and Ireland and BYD's overseas expansion as examples of excess capacity.