March 12, 2026 | 09:34 pm
TEMPO.CO, Jakarta - The United States announced two new trade investigations on Wednesday that could lead to new tariffs on major trading partners after the Supreme Court struck down much of U.S. President Donald Trump's global tariff program.
The probes will look into excess industrial capacity and imports made with forced labor.
U.S. Trade Representative (USTR) Jamieson Greer said the probe under Section 301 of the Trade Act would examine structural overcapacity in economies, including the European Union, China, India, Japan, South Korea, and Mexico, among others.
"These investigations will focus on economies that we have evidence appear to exhibit structural excess capacity and production in various manufacturing sectors," Greer told reporters.
USTR calls out EU excess capacity
Greer also targeted the EU, saying that the bloc has done "approximately zero percent" of what was agreed in the bilateral trade deal reached last July.
He highlighted large U.S. trade surpluses with Germany and Ireland as evidence of EU excess capacity.
The U.S. trade representative also pointed to China's leading EV maker BYD expanding abroad despite excess domestic capacity, citing sectors such as automobiles and semiconductors as examples of global overcapacity.
"We need to protect American jobs, and we need to make sure we have fair trade with our trading partners," he said.
The investigation could result in new tariffs as soon as this summer.
Canada, the second-largest U.S. trading partner, was kept outside the scope of the probe.
Forced labor probe
Meanwhile, the U.S. will launch another Section 301 investigation into goods produced with forced labor, covering more than 60 countries.
The probe could lead to broader import bans similar to existing restrictions on products from China's Xinjiang region.
Washington alleges that Chinese authorities have set up labor camps for ethnic Uyghurs and other Muslim minorities in the western Xinjiang. Beijing denies these accusations.
Supreme Court struck down Trump's tariffs
The new moves come after the Supreme Court ruled last month that Trump had exceeded his authority in imposing sweeping tariffs under emergency powers.
Washington has since imposed a temporary 10 percent tariff to last until July 24 while it works on new trade measures.
Greer said the new investigations could conclude before the temporary tariffs expire in July.
Read: U.S. Oil Exports 2025: The 10 Biggest Importers
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