Section 301 Investigations: Manufacturing Overcapacity and Forced Labor
Summary
In March 2026, the Office of the United States Trade Representative (USTR) launched two parallel Section 301 investigations: one targeting manufacturing overcapacity across 16 countries (including China, EU, Japan, India, Mexico, Vietnam, and other major manufacturers), and one targeting forced labor enforcement failures across 60 countries. Crowell & Moring's International Trade team published this advisory addressing the top seven questions clients are asking regarding pending Section 301 comment deadlines and how to address them.
What changed
The USTR initiated two broad Section 301 investigations in March 2026: one examining manufacturing overcapacity affecting 16 countries including China, the EU, Japan, India, Mexico, and Vietnam, and another investigating forced labor enforcement failures across 60 countries. These investigations are ongoing with pending comment deadlines for affected parties.\n\nCompanies with international manufacturing operations, supply chain exposure in the named countries, or sourcing from jurisdictions with forced labor concerns should monitor these investigations closely. Depending on outcomes, potential consequences could include tariffs on affected goods, import restrictions, or enhanced compliance requirements for supply chain transparency and human rights due diligence.
What to do next
- Monitor USTR for Section 301 investigation updates and comment deadline announcements
- Prepare public comments if your supply chain or manufacturing operations are affected by the overcapacity or forced labor investigations
- Review supply chain mapping and human rights due diligence practices in anticipation of potential tariffs or import restrictions
Source document (simplified)
In March 2026, the Office of the United States Trade Representative (USTR) launched two parallel Section 301 investigations: one targeting manufacturing overcapacity across 16 countries (including China, the EU, Japan, India, Mexico, Vietnam, and other major manufactures), and one targeting forced labor enforcement failures across 60 countries. Here are the top seven questions Crowell & Moring’s International Trade team is getting regarding pending Section 301 comment deadlines from our clients and how to address them.
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