The United States has initiated a trade investigation into 16 countries including Malaysia and the European Union regarding the issue of excess production capacity in the global manufacturing sector.
The investigation was conducted under Section 301(b) of the Trade Act of 1974 by the Office of the United States Trade Representative to assess whether the industrial policies and practices of the countries involved are unreasonable or discriminatory against US trade.
According to US Trade Representative Jamieson Greer, the investigation also aims to determine whether global excess production capacity is putting pressure on the US manufacturing industry.
Among the countries involved in the investigation are China, the European Union, Singapore, Switzerland, Norway, Indonesia, Malaysia, Cambodia, Thailand, South Korea, Vietnam, Taiwan, Bangladesh, Mexico, Japan and India.
The move is seen as part of the reindustrialization agenda driven by the US President Donald Trump administration to strengthen the domestic manufacturing sector.
After the investigation is initiated, the USTR must hold formal negotiations with the governments of the countries involved to obtain clarification on their respective industrial policies and practices.
The public comment period for the investigation is scheduled to open on March 17, 2026.
Section 301 investigations are typically used by Washington as a basis for considering further trade actions, including tariffs or import restrictions, if practices are found to be detrimental to US economic interests.
