Decades of global manufacturing overcapacity have damaged U.S. economy and national security.
For Immediate Release: March 11, 2026
Washington, D.C. — Through several Section 301 investigations announced on Wednesday, the United States will fight back against unfair trade practices that have fomented decades of manufacturing overcapacity. If the United States Trade Representative (USTR) reports that these nations are participating in “unreasonable or discriminatory” policies and practices and “burden or restrict U.S. commerce,” the office may recommend tariffs.
Alliance for American Manufacturing President Scott Paul said:
“Overcapacity is a serious problem. In some cases, such as Chinese autos and steel, it has wrecked economies and industries as well as cost jobs in America. We commend the administration for initiating these investigations, which we hope will lead to meaningful action to defend American workers and manufacturers.”
Paul is available for interviews.
BACKGROUND:
Sixteen economies are under investigation: China, the European Union, Singapore, Switzerland, Norway, Indonesia, Malaysia, Cambodia, Thailand, Korea, Vietnam, Taiwan, Bangladesh, Mexico, Japan, and India.
The USTR has identified the following industrial sectors for its investigation: aluminum, autos, batteries, cement, chemicals, electronics, energy goods, glass, machine tools, machinery, non-ferrous metals, paper, plastics, processed food, robotics, satellites, semiconductors, ships, solar modules, steel, and transportation equipment.
The U.S. steel industry faces a 680+ million metric ton overcapacity in the global market, according to the OECD Steel Outlook. Despite worldwide pressure to manage this surge, China, which is identified as one of the countries most responsible for this excess production, non-compliance with planned capacity reductions neuters those efforts. Meanwhile, Asia is expected to see “significant increases in steelmaking capacity over the next three years.” Indeed, the OECD projects that steel overcapacity will surge to 721 million metric tons by 2027.
###