GDLSK | USTR Initiates Section 301 Investigations Against Dozens of Countries Which Could Result in New Tariffs Replacing the IEEPA Tariffs and Other Measures

The U.S. Trade Representative has initiated two investigations under Section 301 of the Trade Act of 1974.  Under this provision, the U.S. will investigate whether an act, policy, or practice of a foreign country either: a) violates, or is inconsistent with, the provisions of, or otherwise denies benefits to the United States under, any trade agreement; or b) is unjustifiable and burdens or restricts United States commerce.

In the event of affirmative determinations by the USTR, the administration is authorized to take actions designed to affect goods or services of the foreign country in an amount that is equivalent in value to the burden or restriction being imposed by that country on United States commerce. Such actions may include, among other things, the imposition of import duties or other import restrictions.

It is widely understood that these investigations are intended to result in tariffs to replace the IEEPA tariffs recently invalidated by the Supreme Court. It is expected that any final action will be taken in advance of July 24, 2026 (the date on which the authority for the current Section 122 surcharge expires).

Before finalizing any contemplated actions, the administration will seek public comments and hold public hearings.

The specifics of the two investigations and the associated opportunities to provide public comment and participate in the public hearings are summarized below.

1. Acts, Policies, and Practices of Certain Economies Relating to Structural Excess Capacity and Production in Manufacturing Sectors

On March 11, 2026, the USTR initiated an investigation of the economies of key trading partners that have developed excess production capacity leading to, among other things, overproduction and large or persistent trade surpluses, as well as underutilized and unused capacity, in manufacturing sectors.  The investigation will focus on the economies of China, the European Union, Singapore, Switzerland, Norway, Indonesia, Malaysia, Cambodia, Thailand, Korea, Vietnam, Taiwan, Bangladesh, Mexico, Japan, and India.

Key dates in the public comment process are as follows:

• March 17, 2026: USTR will open the docket for the submission of written comments and requests to appear at the hearings.
• April 15, 2026: Deadline for the submission of written comments and any requests to appear at the hearings, along with a summary of the testimony.
• May 5, 2026: The Section 301 Committee will convene public hearings, continuing, as necessary, until May 8th.
• Seven calendar days after the last day of the public hearing: Due date for submission of post-hearing rebuttal comments.

2. Acts, Policies, and Practices of Various Economies Related to the Failure to Impose and Effectively Enforce a Prohibition on the Importation of Goods Produced with Forced Labor

On March 12, 2026, the USTR initiated an investigation regarding the acts, policies, and practices of various economies related to the failure to impose and effectively enforce a prohibition on the importation of goods produced with forced labor. As alleged, such acts threaten domestic producers who must compete with foreign goods produced with an artificial cost advantage and may harm U.S. workers and citizens through distorting competition and the purchase of goods produced under exploitative conditions.

This investigation will focus on the economies of Algeria, Angola, Argentina, Australia, The Bahamas, Bahrain, Bangladesh, Brazil, Cambodia, Canada, Chile, China (PRC), Colombia, Costa Rica, Dominican Republic, Ecuador, Egypt, El Salvador, European Union, Guatemala, Guyana, Honduras, Hong Kong (China), India, Indonesia, Iraq, Israel, Japan, Jordan, Kazakhstan, Kuwait, Libya, Malaysia, Mexico, Morocco, New Zealand, Nicaragua, Nigeria, Norway, Oman, Pakistan, Peru, Philippines, Qatar, Russia, Saudi Arabia, Singapore, South Africa, South Korea, Sri Lanka, Switzerland, Taiwan, Thailand, Trinidad and Tobago, Türkiye, United Arab Emirates, United Kingdom, Uruguay, Venezuela and Vietnam.

Notably, the March 12^th Section 301 investigation covers all of the countries identified in the March 11^th investigation (and many more).  As such, it is possible that some countries could find themselves subject to tariffs imposed under two separate Section 301 investigations (in addition to otherwise applicable tariffs).

Key dates in the public comment process are as follows:

• Current: the USTR has already opened a docket for the submission of written comments and requests to appear at the hearings.
• April 15, 2026: Deadline for the submission of written comments and any requests to appear at the hearings, along with a summary of the testimony.
• April 28, 2026: The Section 301 Committee will convene public hearings, continuing, as necessary, until May 1^st.
• Seven calendar days after the last day of the public hearing: Due date for submission of post-hearing rebuttal comments.

In prior actions, the administration has indicated that the absence of comments opposing a proposed action has been a factor in favor of proceeding with such action. We have frequently assisted our clients in preparing comments and hearing testimony in connection with Section 301 proceedings and have had successes in advancing arguments that resulted in the exclusion of products from the final action.

Compliments of Grunfeld Desiderio Lebowitz Silverman & Klestadt LLP – a member of the EACCNY